Creating and Administering Trusts
Pennsylvania Elder Law Attorney
Effective estate planning often calls for the creation of a trust, an estate planning device that holds money or other assets for the benefit of a specific beneficiary. Trusts have many advantages, including reduction of tax liability, preservation of eligibility for government benefits and avoidance of the lengthy probate process.
Comprehensive Estate Plans Use Wills and Trusts
I have been serving the legal needs of individuals, couples and families in Norristown, and the surrounding areas for well over 30 years. My law firm, the Law Office of Eric J. Cox, is a full-service estate planning and elder law practice dedicated to meeting the needs of clients. As an experienced estate planning lawyer, I can explain the benefits of a trust, help you understand the options available to you, and establish a trust (or trusts) that meets your exact goals.
Generally, trusts are divided into two categories:
- Living trusts are trusts that are established while you, the trust creator, are still alive. You may appoint yourself as the trustee (person who manages the trust) while you are alive and appoint a beneficiary for after your death. The creation of a living trust has certain tax advantages. For example, the trust is technically treated as the "owner" of the trust assets for tax purposes. As a result, assets placed in the trust are not considered part of your overall taxable estate. In addition, you can transfer your assets directly to a beneficiary without going through probate.
Please note, a living trust is only effective if it is properly funded (your assets are transferred into the trust) - Testamentary trusts are trusts that are created after your death per the instructions in your estate plan. Assets from the estate will be transferred into these trusts, managed by a named trustee and distributed to beneficiaries per the terms set forth in your will. These trusts are commonly used if you have minor children, have a special needs person to support or wish to support a particular charity.
There are a multitude of objectives that can be achieved with either a living trust or testamentary trust, including:
- Setting aside funds for a grandchild's education
- Holding assets/inheritance for minor children until they become a certain age
- Transferring assets to a spouse outside of probate
- Setting aside funds for the benefit of a person with special needs
- Setting aside funds to pay for future long-term care needs (such as nursing home costs or other elder care expenses)
After a thorough discussion of your estate planning goals and your family dynamics, I can help you develop a marital trust, special needs trust, life insurance trust, charitable remainder trust or any other type of trust.
Questions About Trusts?
If you have further questions about trusts or would like to discuss your estate planning needs with a skilled attorney in the Norristown area, contact my law firm in Plymouth Meeting, Pennsylvania, to schedule a consultation. Call 484-534-2495.
