Trust Attorneys Serving Western PA
One of the ways that people choose to secure their assets and pass them down to beneficiaries in an effective manner is by creating a trust. Of course, everyone’s situation is different, so it is important that you discuss the details of your estate plan with a legal team you can trust. For decades, Heritage Elder Law & Estate Planning, LLC has proudly guided clients across Western Pennsylvania through each step of the estate planning process, including creating any trusts that may be necessary. Contact our firm today to discuss your situation.
What types of trusts are there and how can they work in my estate plan?
There are a number of different types of trusts that you may want to take into consideration as you consider your estate planning needs. Depending on your situation, you may need one or more options to ensure that your estate plan is well rounded. Some of the common ones that Heritage Elder Law & Estate Planning, LLC can help you with include:
- Revocable Living Trust
- Irrevocable Trust
- Irrevocable Tax Trust
- Special Needs Trust
Revocable Living Trust
Families often wish to avoid the probate process, reduce administrative costs, lower expenses, and guarantee that the kids can not fight with each other in court. This is where a revocable living trust comes into place. Very similar to a wagon you might have had when you were a child, this option is where you can put your assets, control where they are, and decide who has access to your stuff while you are alive.
The revocable living trust also becomes a detailed family rule book, making it clear who has access to your stuff, control of your assets, and the timing of distribution after you pass away. Having a revocable living trust largely, if not completely, cuts the government out of the rules you leave for your family. A tax filing will need to be made when you have one. However, when compared with probate, this option reduces costs and keeps it simple for your family while preventing fighting through the probate process.
There are many types of irrevocable trusts, but the irrevocable asset protection trust is one commonly done through our planning sequence to protect your assets from the government and from being lost to long-term care. The irrevocable asset protection trust makes sure there is a clear list of authority in the case you become incapacitated, lists who is in control of your assets, and sets the timing of when the distribution is going to occur.
The asset protection trust also allows the creator, often referred to as the “grantor,” to control everything and receive all of the income. Essentially, when we create an asset protection trust, we put your stuff away, trusting that it will be there in the future for your beneficiaries. By doing that, you are afforded protection.
After five years of assets being inside the asset protection trust, they are no longer available for your healthcare costs moving forward. The day after putting assets into an asset protection trust, they are invisible and protected from creditors, such as lawsuits.
There are many advantages, but there are many different versions of an irrevocable trust and not all are created for the same purpose. Generally speaking, if you are looking to protect assets from the government, long-term care, and creditors, this option is an extremely powerful tool used to do that. It is also the least expensive route to accomplish those goals as long as you are healthy and plan to be healthy for some time.
Contact Heritage Elder Law & Estate Planning
If you are thinking about how to best pass down assets to your beneficiaries, it may be a good idea to consider creating a trust. The experienced attorneys at Heritage Elder Law & Estate Planning, LLC can help you explore all of your options and navigate the path forward. Contact us today to discuss your situation.