Trusts are legal documents that allow you to plan for the future. This planning goes beyond your own life, as trusts are a useful tool for determining how your property is distributed after you pass away. Our seasoned estate planning attorneys could advise you on whether a trust is right for you.
If you are going through the estate planning process, a trust could be in your best interest. These tools often work hand-in-hand with a last will and testament. Let our Pittsburgh trusts lawyer advise you on your options.
A motivated lawyer in Pittsburgh might rely on trusts for many different reasons during the estate planning process. One of the primary benefits of relying on a trust is the prospect of avoiding probate.
Probate typically occurs when a person passes away while owning a certain level of assets. When someone dies, the probate court will typically oversee how their property is dispersed. This is done according to their will or state law, if no will is in place.
Trusts involve transferring property from an individual to the trust, which may allow their family to avoid probate entirely. This could reduce the time and financial costs facing your beneficiaries.
Pennsylvania law allows for many different types of trusts. While revocable and irrevocable trusts are the most commonly used by estate planners, you have an array of options available to you. A knowledgeable attorney could advise you on the appropriate type of trust for your circumstances.
An irrevocable trust is a popular estate planning tool. It removes assets owned by an individual and places them into the possession of the trust for the rest of that person’s life. Irrevocable trusts are used for tax planning or to protect assets from long term care expenses. Don’t let the word irrevocable scare you, with some of these trusts you can maintain control over your assets.
Revocable trusts also transfer ownership of assets to the trust, but this type of trust does allow for modification or termination during the trust creator’s life. Revocable trusts are generally used to avoid probate.
A life insurance trust is used for a specific purpose. These trusts allow a person to remove their life insurance from their estate. By doing so, their beneficiaries could avoid paying taxes on the policy.
Charitable trusts are often a win-win for both the trustor and their favorite charity. Charitable trusts offer a way for trustors to reduce their tax bills while also making a charitable contribution. There are two types of charitable trusts. Charitable lead trusts pay a charity interest on an asset placed in a trust for a set amount of time. What is left in the trust after that time goes to the trustor’s beneficiaries. There are also charitable remainder trusts. This option allows the person making the donation to live off the interest of the asset held in trust, with the remainder going to the charity upon their passing.
If you are making decisions about your estate plan, a trust could play an important part. Whether you are making arrangements for loved ones or providing financial support to a charity, there are different trusts that could help you achieve your goals.
Trusts are complex, and any error in setting them up could have consequences. Get in touch with a Pittsburgh trusts lawyer today.