The Irrevocable Trust: Protection and Long-Term Strategy 2 An irrevocable trust changes the game. Once property is transferred in, it’s no longer legally yours and that’s exactly the point. Because you relinquish direct ownership, the assets are generally shielded from future lawsuits, creditors, and in certain cases, even estate taxes. For rental property owners with larger portfolios, this can be a smart second-layer of protection and planning. How landlords use irrevocable trusts:
• Asset Protection : Rental real estate can attract liability. Placing high-risk properties into an irrevocable trust can create a legal barrier between you and potential lawsuits. • Tax and Wealth Planning: Property appreciation inside an irrevocable trust can be structured to occur outside your taxable estate, reducing potential estate tax exposure. • Family or Charitable Legacy: Some owners use irrevocable trusts to direct long-term benefits such as rental income to support heirs or charitable causes for decades.
PLACING HIGH-RISK PROPERTIES INTO AN IRREVOCABLE TRUST CAN CREATE A LEGAL BARRIER BETWEEN YOU AND POTENTIAL LAWSUITS.
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