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Serving Philadelphia, Delaware County, Montgomery County, Bucks County and Chester County since 1996.
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Trusts
A trust is a legal arrangement through which one person, called a “trustee,” holds legal title to property for another person,
called a “beneficiary.” The rules or instructions under which the trustee operates are set out in the trust instrument.
Trusts can be created within a Will or as a free-standing entity in order to accomplish a number of objectives, such as the following:
- To transfer the ownership of property while maintaining a measure of control over the property;
- Tax savings;
- Protection for a disabled loved one;
- To avoid financial Guardianship proceedings; and
- Protection from creditors.
How We Can Help
For whatever reason you might need a trust, we can help. We can work with you to:
- determine when a trust is needed or appropriate.
- update an existing trust to reflect your current circumstances and changes in the law.
- integrate your trust with other important estate planning tools such as wills and powers of attorney.
- integrate your trust into a Medicaid asset protection plan.
- integrate your trust into an Elder Care Plan.
Uses of Trusts
There can be several advantages to establishing a trust, depending on your situation. Best-known is the advantage of avoiding
probate. In a trust that terminates with the death of the donor, any property in the trust prior to the donor's death passes
immediately to the beneficiaries by the terms of the trust without requiring probate. This can save time and money for the
beneficiaries. Certain trusts can also result in tax advantages both for the donor and the beneficiary. These are often
referred to as "credit shelter" or "life insurance" trusts. Other trusts may be used to protect property from creditors or
to help the donor qualify for Medicaid. Unlike wills, trusts are private documents and only those individuals with a direct
interest in the trust need know of trust assets and distribution. Provided they are well-drafted, another advantage of trusts is
their continuing effectiveness even if the donor dies or becomes incapacitated.
Kinds of Trusts
Trusts fall into two basic categories: testamentary and inter vivos.
- A testamentary trust is one created by your will, and it does not come into existence until you die.
- In contrast, an inter vivos trust starts during your lifetime. You create it now and it exists during your life.
There are two kinds of inter vivos trusts: revocable and irrevocable.
Next Topic - Types of Trusts
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Call Us: (610) 446-9626
Fax Us: (610) 446-9985 |
Visit our offices:
17 Mifflin Ave. Suite 202
Havertown, PA 19083 |
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