Setting up a trust isolates your assets from probate, saving time and money in the distribution. When wills are probated, anyone can look it up and find out what you own and who is receiving what from you, but trusts are private. Some trusts benefit your tax situation, or you can retain control and tweak assets and beneficiaries throughout your lifetime with help from a diligent trusts attorney.
Whether you are devising a trust for a specific reason, such as qualifying for nursing home care or providing for disabled loved ones so their Social Security benefits are not impacted, you will need someone to help distribute assets after you, as the grantor, die. Our experienced Warrendale trust administration lawyers can answer all your questions.
Revocable trusts can be altered or revoked during the grantor’s lifetime. The grantor can serve as the trustee, the person who administers the trust’s assets for the beneficiaries, or can appoint a trusted friend or loved one, who must follow the grantor’s wishes. The grantor retains ownership of the trust’s assets. After they pass away, the trust becomes irrevocable, and the assets are distributed to the beneficiaries according to the grantor’s instructions.
When it comes to irrevocable trusts, there are many types. There are irrevocable trusts used for tax planning, charitable planning, or nursing home Medicaid qualification. At the Sechler Law Firm, our Warrendale administration legal professionals could help you understand which types of trust best fit your needs.
A trustee has much to do after a grantor dies. Abiding by the grantor’s wishes, a trustee is responsible for:
A trustee may also have to file a Form 706, a federal estate tax return. The form establishes the value of trust assets and is filed within nine months of the grantor’s death. The state does not have an estate tax, but there is an inheritance tax on beneficiaries, which must be paid prior to distributing assets.
Other forms that may need to be submitted include Form 1041 to report income taxes, a Notice of Fiduciary Relationship form, and a Request for Discharge of Personal Liability. Our Warrendale trust administration attorneys can help you with all aspects of this estate planning tool.
Once the trust is resolved as the grantor intended and the law demands, the trustee releases the assets to the named beneficiaries. To head off disagreements, you, as trustee, should stay in close touch with beneficiaries so they understand how you are progressing and can have their questions answered.
Trusts have many advantages in estate planning, but they can seem complicated when it is time to administer them after a grantor dies. While beneficiaries rely on trustees to inform them about the process, trustees can rely on our attorneys for guidance. You could be liable if beneficiaries begin complaining, and we help you avoid that scenario.
Whether you are interested in trusts tailored to your needs or you have been named trustee for one, a Warrendale trust administration lawyer is ready to put your plan in place or guide your journey as a trustee. Contact us to schedule a consultation, or click here to come to an elder law workshop.
