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Heritage Tree LogoIs There a Limit to How Much Money Can Be Placed in a Trust?

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It is commonly recommended to establish a trust over a will if you have significant financial assets. This may especially apply if you have a considerable amount of cash on hand and in your safety deposit box, along with a substantial net total in your checking, savings, and money market accounts. With this, you may wonder about the minimum amount of money needed to set up a trust and the maximum amount you can use to fund it, if there is one. Continue reading to learn whether there is a limit to how much money can be placed in a trust and how one of the experienced Butler County trust attorneys at Heritage Elder Law & Estate Planning, LLC can help manage your assets.

Besides money, what types of assets can be placed in a trust?

Generally speaking, anything you possess of monetary value may be placed in your trust. This is because the purpose of a trust is to have your designated beneficiaries receive your financial support when you are, unfortunately, no longer around to directly provide it to them yourself. Therefore, aside from money, the parameters of a trust may also allow you to pass down the following assets:

  • Your real estate properties.
  • Your valuable artwork and other collectible items.
  • Your non-retirement investments and brokerage accounts.
  • Your business interests and intellectual property ownership.

Is there a limit to the amount of money that can be placed in a trust?

Firstly, you do not have to consider yourself a high-net-worth individual to incorporate a trust into your estate plan. This is because there is no set minimum for the amount of money needed to establish a valid and enforceable trust. However, the general rule of thumb is that owning assets that collectively total $100,000 or more constitutes a trust rather than a will. Of note, the complexity of your trust may determine how much it may cost you to set it up.

That said, there is no enforced limit to the amount of money that can be placed in a trust. Yet you must remain mindful of exactly how much you use to fund it if you wish to benefit from the annual gift tax exemption. That is, one of the greatest advantages of a trust is that you may transfer a significant amount of wealth to your designated beneficiaries without having it subject to gift and estate taxes. But this is only so long as it falls below the federally-enforced limit of $18,000 per recipient per year, as of 2024. Rest assured, the Commonwealth of Pennsylvania does not enforce any additional limits.

In conclusion, you require the services of a skilled Butler County estate planning attorney when placing funds in your trust. So please schedule an initial consultation with us at Heritage Elder Law & Estate Planning, LLC today.

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