Trusts Lawyers in Chester County, PA, Helping Clients Safeguard the Future
Planning for the time after your death can be challenging to consider. However, with the help of an experienced trusts attorney, you can protect your family and plan for the future. Trusts can be a valuable estate planning tool to ensure your beneficiaries and other heirs receive their rightful property and assets.
Additionally, certain types of trusts can help your family avoid probate and estate taxes or shelter your assets from creditors.
If you would like more information about how establishing a trust and larger estate plan could benefit you and your family, contact our law office, and ask to schedule a free consultation to discuss your legal needs.
What Are the Most Common Types of Trusts in Pennsylvania?
There are five types of trusts available in Pennsylvania. An experienced trust lawyer can evaluate your needs and determine the best option for you.
The five different types of trusts include:
- Revocable trust: This trust, also called a living trust, can be changed, amended, or revoked at any time by the person who created the trust, also called the grantor.
- Irrevocable trust: This trust cannot be amended or revoked once it has been established. Once the assets are placed in the trust, they will remain there until the grantor’s death or other terms have been satisfied.
- Irrevocable life insurance trust: The grantor can place their life insurance within this trust to allow their heirs and beneficiaries to avoid paying taxes on the death benefit they receive.
- Charitable trust: Charitable trusts are divided into two categories, depending on your needs. A charitable trust is created so a charity will receive a financial gift for a set period of time. The remainder of the trust is then distributed to beneficiaries. A charitable interest trust gives assets to specified charities when the term ends.
- Special needs trust: This trust can be established to provide money for a disabled family member or another heir to ensure they have the financial resources they need.
If you are still trying to determine which type of trust would best suit your needs, one of the highly knowledgeable trusts lawyers of Peak Legal Group will be happy to assist you.
Is a Trust Better Than A Will?
A last will and testament have significant benefits as it dictates the decedent’s final wishes and how their property and assets will be distributed. However, depending on the estate’s circumstances, heirs may be forced to wait to receive their inheritance after the will has gone through probate court.
Going through the legal process can be lengthy and cost prohibitive for families who need the financial resources contained in the will.
However, certain types of trusts are not obligated to go through the probate legal process. These trusts include revocable trusts. After your death, the trustee is tasked with distributing the assets contained within the trusts to the rightful heirs.
In some instances, individuals establish a testamentary trust created upon their death that provides for all or some of the distribution of their estate. On the other hand, some individuals create a spendthrift trust for heirs that may not spend their money wisely or to protect their assets from creditors.
Finally, many wealthy married couples choose to establish a credit shelter trust. A credit shelter trust is created after one spouse dies and consists of two separate trusts. These two separate trusts help individuals to legally minimize their estate tax exemptions.
What is an Asset Protection Trust?
An asset protection trust protects the grantor’s assets from creditors. Many individuals use this type of trust to reduce the number of assets in their name so they may be eligible for Medicaid if the need should arise as they grow older to enter a nursing home.
However, Pennsylvania does not recognize asset protection trusts. Instead, they utilize other trusts, such as Qualified Personal Residence Trusts to help them realize their goals. Nevertheless, some individuals also choose to move asset protection trusts to other states where they are recognized.
If you are growing older and want to learn how to protect your assets against Medicaid Estate Recovery after you pass away, allow Peak Legal Group to assist you with your legal needs and create a plan to safeguard the resources you have worked hard to obtain.
What Makes Peak Legal Group the Best Choice to Help Me Plan For the Future?
Peak Legal Group has extensive experience in successfully helping individuals establish trusts for their needs. Our legal team is dedicated to ensuring that you can meet your estate planning goals and provide for your own future and those of your beneficiaries.
We realize that many people think only the wealthy can create trust. However, many choices are available to help individuals regardless of their needs. When we meet with you, we will sit down and determine which type of trust best suits your needs and your family’s.
Additionally, if you have power of attorney, you can create a trust if it benefits the individual who has granted you legal authority. However, a qualified trusts lawyer can assist you with creating the trust to ensure that all of the terms and conditions meet the legal criteria specified by Pennsylvania law.
Contact Peak Legal Group of Chester County, PA, at 610-989-7064 and ask to schedule a free no-obligation consultation to learn how we can help you plan for the future.