If you are creating an estate plan, you may want to consider an irrevocable trust for Washington residents. When it comes to Washington estate planning, there are many different documents you can use to protect assets from nursing homes, follow the Medicaid look back-period, and provide security for your loved ones. That is why it is important to do your research so that you know exactly what types of documents apply to your situation. However, before proceeding, it is always strongly advised to get the help of a Spokane estate planning attorney.
What Is an Irrevocable Trust?
Before we discuss Spokane estate planning trends in 2025, what are irrevocable trusts? An irrevocable trust is a legal document that gives you the authority to transfer ownership of assets to a trust. Once this has been done, the trust cannot be altered or revoked unless the beneficiaries of the trust give their permission.
So, by establishing an irrevocable trust, you are giving up ownership of those assets and no longer have control over them.
Although this may seem drastic, it can be a very useful tool when it comes to long-term care trust planning. It also ensures these assets will be protected so that they will ultimately go to the right beneficiaries.
A similar option to an irrevocable trust is a revocable trust. A revocable trust does many of the same things as an irrevocable trust, except it allows you to make changes as you see fit. While this can give you greater control and flexibility over your assets, it does mean that they will be less protected since the terms of the trust can be more easily altered.
How Irrevocable Trusts Work in Spokane
An irrevocable trust is a legally binding document that must be created in a specific way. The document itself usually includes your intentions, the rules for how the trust will operate, and the beneficiaries who will be entrusted with your assets. It is usually recommended that an estate planning attorney draft this document to ensure it is legally binding and in line with Washington laws.
In addition to creating this document, you will have to formally transfer ownership of your assets so that they are no longer in your name.
Because you are transferring ownership, you will need to establish a trustee who will oversee how the trust operates. They will follow your instructions and act in the best interest of the beneficiaries, ultimately handling the distribution of assets when you pass away.
Benefits of Irrevocable Trusts
The number one benefit of establishing an irrevocable trust is that the asset in the trust will no longer be under your ownership. This is a common estate planning strategy that protects assets so that they will ultimately go to your loved ones.
Here are the main benefits of an irrevocable trust, no matter your specific situation:
- Your estate tax will be reduced.
- Assets within the trust will be protected from creditors since they will no longer belong to you.
- You are more likely to meet the Medicaid eligibility requirements by reducing the assets in your name.
- You will be able to provide financial support for disabled loved ones without the risk of disqualifying them from receiving government benefits.
To make the most of your irrevocable trust, you should seek the help of an estate planning attorney in Spokane. An attorney will have experience in this area and can help you create a strategy to protect your estate and the best interests of your loved ones.
Potential Drawbacks and Limitations
Like any other aspect of estate planning, there are going to be pros and cons for every option. The same rule applies to irrevocable trusts, as they do have some downsides, and they aren’t going to be the right fit for every individual.
Here are some potential drawbacks and limitations to consider before moving forward with establishing an irrevocable trust:
- Once established, you will no longer have any control over your assets, as they will not belong to you anymore.
- The inability to modify an irrevocable trust can create issues, especially if your circumstances change.
- The process of establishing an irrevocable trust can be quite complex and may come with some additional costs.
- Although this trust can help with estate taxes, it can also result in compressed tax brackets.
Special Considerations For Spokane, Washington Residents
Aside from the general aspects of estate planning that you need to be aware of, Spokane residents also need to be aware of more specific considerations. There are some specific Washington estate laws and resources in 2025 that can help you better prepare for the future.
For example, many estates in Washington qualify for non-intervention probate. So, if you create a thorough estate plan and utilize trusts, you may be able to bypass the probate process entirely.
Also, for estates under $100,000, excluding real estate, you may be able to qualify for Washington’s small estate affidavit.
You should also be aware that if you have beneficiaries designated on life insurance policies, bank accounts, or retirement accounts, this supersedes wills or trusts. That is why you should work with an estate planning attorney to ensure your estate plan does not contradict itself.
Get in Touch With an Estate Planning Attorney Today
If you want to know more about irrevocable trusts for Washington residents, contact a Spokane elder law attorney in Washington at Legacy Law Group. Contact us today at 509-315-8087 to speak with one of our attorneys to get the process started.
FAQ
Can I change an irrevocable trust after it’s set up?
In most cases, no. But with strategic planning, you may be able to add flexibility to your trust with certain legal tools.
Will Medicaid count assets in an irrevocable trust?
Not usually as long as the trust was created outside of the look back-period.
Is an irrevocable trust better than a revocable trust?
Neither option is better than the other, as it is completely dependent on your goals. Irrevocable trusts are better when it comes to protecting assets, while revocable trusts don’t provide as much protection but are more flexible.
