Living Trust Lawyers Serving Bucks County, Montgomery County & Philadelphia
After taking a look at the probate process, many individuals decide that it is best to instead set up a trust for the passing of funds to family members. Probate can be a lengthy and involved process of gathering a deceased person’s assets to properly pass to its beneficiaries. There is a great deal of paperwork and timelines to understand, so, rather than endure the probate process, many families choose to set up a trust.
What is a Trust?
A trust provides control over how the beneficiary uses or applies the funds in an estate. There are three parties involved when a trust is created:
The Trustmaker: This is the person who creates the trust.
The Trustee: A person or entity, the trustee manages property the trustmaker transfers and titles in the name of the trust.
The Beneficiary/Beneficiaries: Receives benefits from the property within the trust
The main objective of trusts is to reduce estate tax liability, protect property in a given estate, and to avoid probate.
Rather than leave it up to a beneficiary to decide what happens with a large sum of money, a trust can ensure the funds are used solely for the purpose designated by the grantor, i.e. college tuition or charity donations.
Many choose to take advantage of a trust to ensure that funds reach a specific charitable organization. It is also helpful in mitigating taxes, planning for special needs or holding funds for minors. Whatever is important to the individual and relevant to the surviving family’s purposes can be included in a trust.
Those interested in setting up a trust in Bucks County, Montgomery County or Philadelphia should contact the Law Offices of Michael Kuldiner, P.C. and speak with one of our living trust lawyers.
What types of trusts are there?
- Charitable Trust: The assets included in a charitable trust are usually liquid and are managed by a charitable foundation. This trust is created to benefit a charitable organization and can have tax benefits.
- Revocable/Irrevocable Trust: These types of trusts can be changed or revoked at any time; or, in the opposite case, the trust can be deemed irrevocable or unchangeable. Revocable trusts are the best choice if you want to avoid probate. Irrevocable trusts cannot be altered, and once property is placed in the trust, not even the trustmaker can take the property out of it.
- Grantor Trust: A grantor trust designates the grantor as the owner of the trust for tax purposes. With a grantor trust, the grantor has total control over the property within the trust and can also revoke the trust if they desire.
What are the benefits?
In a word: Control. When an estate goes through probate, the family and heirs are all involved in a long and slow legal process to determine who gets what. On the other hand, a trust provides a comprehensive manner by which to distribute money, rather than leaving it up to the legal system.
Even if you do not have a large estate, having a trust creates a simpler process for beneficiaries and reduces the amount of in-fighting that often occurs during probate.
When you need living trust lawyers to represent you with your legal matters in Bucks County, Montgomery County and Philadelphia, contact the Law Offices of Michael Kuldiner, P.C. to obtain the best results possible for each case. To arrange a consultation with one of our living trust lawyers or an estate planning lawyer, please give us a call at (215) 942-2100 or contact us by submitting an online form.