Westchester Irrevocable Trust Attorney

When long-term protection of your assets is a priority, an irrevocable trust offers powerful legal and financial advantages. Unlike revocable trusts, irrevocable trusts are fixed once established—but that permanence is what gives them their strength. At Cavallo & Cavallo, we help individuals and families throughout Westchester create tailored irrevocable trusts that reduce taxes, safeguard wealth, and plan for Medicaid or long-term care.

What Is an Irrevocable Trust?

An irrevocable trust is a legal structure where you, as the grantor, transfer ownership of certain assets into the trust and relinquish the ability to modify its terms or reclaim the property. From that point on, a trustee manages the assets for the benefit of designated beneficiaries.

Because the assets no longer legally belong to you, they are typically:

• Protected from creditors and lawsuits
• Excluded from your taxable estate
• Shielded from Medicaid’s asset calculations

Irrevocable trusts are an advanced estate planning tool, ideal for clients with long-term goals and protection in mind.

Why Choose an Irrevocable Trust?

There are several situations where an irrevocable trust can help you achieve important estate and financial planning objectives:

• Preserving eligibility for Medicaid long-term care
• Reducing or eliminating estate taxes
• Shielding assets from legal judgments or creditors
• Controlling how and when heirs receive an inheritance
• Supporting a loved one with special needs
• Providing long-term generational wealth preservation

While they require giving up some control, the benefits of an irrevocable trust can be far-reaching for families in Westchester.

Types of Irrevocable Trusts

We help clients establish a variety of irrevocable trusts, each designed for specific needs:

Medicaid Asset Protection Trust (MAPT)

• Protects your home and savings while allowing you to qualify for Medicaid long-term care benefits
• Must be funded at least five years before applying for Medicaid

Irrevocable Life Insurance Trust (ILIT)

• Holds life insurance policies outside your estate
• Keeps large death benefits from being subject to estate tax
• Can provide liquidity to cover taxes or pass wealth tax-free

Special Needs Trust (SNT)

• Preserves assets for a disabled beneficiary without jeopardizing Medicaid or SSI
• May be funded by parents, grandparents, or with a legal settlement

Grantor Retained Annuity Trust (GRAT)

• Transfers appreciating assets to heirs with minimal gift tax
• Allows you to receive payments from the trust for a set term

Charitable Trusts

• Support your favorite causes while creating income streams or reducing taxes
• Common options include Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs)

Spousal Lifetime Access Trust (SLAT)

• Provides for your spouse during their lifetime
• Removes assets from your taxable estate while keeping indirect access to funds

We take time to explain each option and create the trust that fits your priorities.

Asset Protection and Long-Term Care Planning

One of the most common uses of irrevocable trusts in Westchester is to prepare for future long-term care needs. Nursing homes in New York can cost over $150,000 annually, and without planning, your estate may be at risk.

A Medicaid Asset Protection Trust:

• Transfers your home or assets out of your name
• Starts the 5-year lookback period for Medicaid eligibility
• Allows you to live in the home or receive income from the trust
• Preserves wealth for your spouse or heirs

Early planning is critical to take full advantage of this strategy.

Tax Benefits of Irrevocable Trusts

Irrevocable trusts can also reduce exposure to estate taxes, which is particularly valuable for high-net-worth families. Depending on how they are structured, they can:

• Remove assets from your taxable estate
• Use gift tax exclusions and lifetime exemptions strategically
• Transfer appreciation to heirs with reduced tax impact
• Generate income tax savings through charitable deductions

We work closely with tax professionals to ensure your plan maximizes protection and complies with state and federal law.

Creating and Managing an Irrevocable Trust

The process of setting up an irrevocable trust in Westchester includes:

1. Choosing the right type of trust
2. Drafting a detailed trust agreement that reflects your goals
3. Selecting a trustee—often a family member, friend, or professional
4. Transferring assets into the trust (real estate, investments, etc.)
5. Monitoring the trust’s activity and compliance

Once established, you typically cannot change the trust—but with careful planning, flexibility can still be built in through trust protectors or powers of appointment.

Frequently Asked Questions About Irrevocable Trusts

Can I still live in my home if I transfer it to a trust?
Yes. With a properly structured Medicaid trust, you can remain in your home for life while protecting its value.

Do I lose access to the assets?
Generally, yes. That’s what makes the trust effective for protection. However, you can retain income or other limited rights depending on the trust’s design.

Can I change or revoke an irrevocable trust?
Not easily. Once created, it’s meant to be permanent. However, certain provisions may allow for limited adjustments or restructuring with the right legal tools.

Will an irrevocable trust protect assets from lawsuits?
Yes, if properly established and not created to defraud existing creditors. It can shield assets from liability or court judgments.

Is there a limit to how much I can transfer into an irrevocable trust?
No, but large transfers may have gift tax implications. We help structure contributions using current exemption and exclusion rules.

Can my heirs access the trust while I’m alive?
Only if the trust permits it. You can customize distribution rules to fit your intentions—whether that means delayed access, restricted uses, or regular payments.

Serving Throughout Westchester, NY

• Scarsdale
• Bronxville
• Larchmont
• Rye
• Chappaqua
• Pelham
• Armonk
• Mamaroneck
• Dobbs Ferry
• Tarrytown

How Cavallo & Cavallo Can Help

Cavallo & Cavallo has decades of experience helping Westchester families use irrevocable trusts as part of thoughtful estate and long-term care planning. We simplify complex legal strategies and create a clear, personalized plan to protect your legacy.

Our services include:

• Creating customized irrevocable trusts
• Asset protection and Medicaid eligibility planning
• Trust funding and documentation
• Trustee guidance and compliance support
• Tax-efficient wealth transfer strategies

We’re here to help you build a more secure future for yourself and the people you love.

Talk to a Westchester Irrevocable Trust Attorney Today

If you’re ready to take the next step in protecting your assets, securing Medicaid benefits, or reducing taxes, a properly structured irrevocable trust can make all the difference. Contact Cavallo & Cavallo today to speak with an experienced Westchester estate planning attorney and explore the right trust strategy for your needs.