A trust allows a trustor (the person who creates the trust) to transfer property to someone else and provides tax benefits. In addition, this transfer can occur at any time in the future regardless of court rulings. Trusts can result in the one-time transfer of property or provide for the long-term maintenance of a loved one or charitable interest.
Our New Castle trusts lawyers may be able to help if you are considering creating a property transfer document. Let our estate planning attorneys explain how trusts function and the steps you must take to comply with Commonwealth law.
At their core, trusts are a way for property owners to transfer assets to another party, or beneficiary. Beneficiaries can be individuals, charities, or even pets. A skilled attorney in New Castle could explain that while the beneficiary of a trust stands to gain the most from its creation, the trust has advantages for its creator, as well.
Once a property enters a trust, it no longer belongs to the trustor. This means the trustor will not need to pay taxes on that property. In addition, this could decrease a trustor’s overall assets, making them eligible for government benefits, such as Medicare, when moving into a nursing home.
Another advantage of trust creation is that property which moves into a trust can flow to a beneficiary at any point in the future. This contrasts with wills, which only have legal effect upon a testator’s death, and parties to a will must wait for probate to end before receiving property.
People create trusts for a variety of reasons, and these documents can take on many forms. However, regardless of a person’s motivations or the language of the document, it is essential to meet certain legal requirements.
Pennsylvania Consolidated Statutes, Title 20 §7731 says that a trust is created when a transfer of property occurs through a written document. In addition, PA Consol. Stat., Title 20, §7732 states that a trustor must have the intent to write and sign the document. Finally, all trusts must have a trustee overseeing the property while it is in the trust’s possession. It is vital to nominate a person or organization that you trust to act in your best interests.
A competent attorney who understands local laws could guide you in creating a legally binding trust and selecting an appropriate trustee.
Trusts are a popular and safe way to oversee the transfer of assets from one party to another. The owner of a property cedes control of the assets to a trust managed by a trustee, who distributes the property to beneficiaries at a stated future time.
Our well-versed New Castle trusts lawyers could help you determine whether this arrangement is right for you. Reach out today to schedule a consultation with a member of our team.