A popular planning tool for reducing estate tax exposure, avoiding probate, and arranging an efficient administration of your estate is a revocable trust. Our Estate Planning attorneys can assist you with drafting a revocable trust that accomplishes your goals. Revocable trusts achieve a number of planning objectives, including:
- Holding assets for minor beneficiaries or spendthrift beneficiaries who do not handle money well so that the trustee invests the assets and carefully uses the income and principal as you direct
- Providing for scheduled distributions at certain ages, rather than one lump sum distribution
- Protecting a beneficiary’s inheritance from the claims of creditors
- Ensuring that a disabled beneficiary will not lose eligibility for public benefits
- Planning for blended families to ensure that the children of the first spouse to die are protected
- Preserving one’s estate tax and generation skipping transfer tax exemptions
- Designating a reliable individual or trust company as trustee to property manager and invest assets
- Providing continuity in the management of assets should you become disabled
- Assuring privacy as trusts are not filed as a public record, whereas Wills are
A Will can create a trust, known as a testamentary trust. While a testamentary trust remains subject to the ongoing oversight of the Probate Court, clients sometimes prefer the probate court to supervise the administration of a trust.
Even with the use of a revocable trust, it is important to have a Will, in the event your trust is not fully funded. A “pour-over Will” provides that any assets not owned by your trust at your death will pass though the estate and into the trust.
A revocable trust allows for much more flexibility and control in the distribution of your assets than a Will.
Contact us if you would like to discuss this planning option.