Irrevocable Trust Attorney in Pennsylvania
An irrevocable trust is one of the most powerful estate planning tools for protecting wealth and reducing taxes. Unlike a revocable trust, once you transfer assets into an irrevocable trust, they are no longer legally yours—meaning they may be shielded from creditors, nursing-home costs, or estate taxation.
At Chadwick Estate Law, we design irrevocable trusts that balance protection with practicality, ensuring your plan matches your family’s goals. With advanced training in tax law from Georgetown University Law Center and experience handling complex trust matters at an AmLaw 100 firm, Bass Chadwick provides the expertise you need for sophisticated planning.
Why Choose an Irrevocable Trust?
Asset Protection — Assets in an irrevocable trust are generally outside the reach of creditors, lawsuits, and sometimes Medicaid spend-down rules.
Estate Tax Reduction — Because assets are removed from your taxable estate, irrevocable trusts may lower or eliminate estate tax exposure.
Wealth Preservation — Trust terms can ensure that assets are managed responsibly and preserved for children, grandchildren, or charitable causes.
Long-Term Care Planning — Strategic transfers made more than five years before applying for Medicaid may protect assets from being spent on nursing-home costs.
Specialized Uses — Irrevocable life insurance trusts (ILITs), charitable remainder trusts, and spousal lifetime access trusts (SLATs) each address unique needs.
Common Types of Irrevocable Trusts
Irrevocable Life Insurance Trust (ILIT) — Keeps life insurance proceeds out of your taxable estate.
Medicaid Asset Protection Trust — Protects assets while preserving eligibility for long-term care assistance (subject to the five-year lookback).
Charitable Trusts (CRTs & CLTs) — Provide income to family or charity, while offering income or estate tax benefits.
Spousal Lifetime Access Trust (SLAT) — Allows one spouse to gift assets for long-term protection, while still providing indirect access to income.
Dynasty / Generation-Skipping Trusts — Preserve wealth for multiple generations with creditor and divorce protection.
Who Should Consider an Irrevocable Trust?
Families with estates approaching federal or state estate tax thresholds
High-net-worth individuals seeking creditor or lawsuit protection
Families planning for long-term care or Medicaid eligibility
Parents or grandparents wanting to pass wealth with spendthrift or divorce protection
Anyone using advanced tax or charitable strategies
Risks & Trade-Offs
Irrevocable trusts are not for everyone. Key considerations include:
Loss of Control — You cannot freely change or revoke the trust once created.
Lookback Rules — Medicaid planning requires transfers at least five years in advance.
Complex Administration — Trustees must keep records, accountings, and tax filings.
Gift Tax Rules — Transfers to an irrevocable trust may trigger federal gift tax reporting.
We’ll help you weigh these trade-offs and decide if an irrevocable trust fits your overall plan.
FAQs
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Yes—if properly funded, assets in an irrevocable trust are usually excluded from the taxable estate. Timing and structure are critical.
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Generally no, but Pennsylvania law allows “decanting” (moving assets into a new trust) or court-approved modifications in certain circumstances.
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Often a trusted family member or a corporate trustee. Trustees must be impartial, organized, and capable of meeting fiduciary duties.
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Asset transfers into certain irrevocable trusts must occur at least five years before applying for Medicaid benefits; otherwise, penalties may apply.
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Yes, properly drafted irrevocable trusts can shield assets from a beneficiary’s divorce proceedings.
Protect Your Legacy with a Plan You Understand
Call 215-277-0888, email Bass or fill out this form to get started.
