A Philadelphia Wills Attorney Can Explain Trusts
April 4, 2022
A Philadelphia wills attorney assists clients with the formation of wills, trusts and other estate planning documents. Trusts can be particularly helpful for individuals who wish to retain a sense of control of assets that they provide to their beneficiaries.
A trust forms a legal relationship between you, the settlor – the individual forming the trust – and the trustee – the person who holds the legal title to the property for the beneficiary’s benefit.
Formation of Trusts
You form a trust when you transfer a legal title of assets to your trustee. The trustee has the legal duty to hold the assets and manage them for the benefit of the beneficiaries that you designated.
Types of Trusts
A testamentary trust is established in a will and comes into effect only after your death. An inter vivos trust is established during your lifetime. It may be either revocable or irrevocable. Revocable trusts allow you to manage trust assets during your lifetime. Irrevocable trusts are generally used to protect assets from creditors.
Purposes of Trusts
Your attorney can explain that trusts may be used for a variety of reasons. One common reason is for tax planning. Some trusts are established so that you or your spouse can take an unlimited marital deduction so that the surviving spouse defers the payment of estate taxes until both spouses die. Irrevocable trusts are sometimes used to transfer assets away from a person’s estate without giving beneficiaries immediate control over them. Trusts are also commonly used to manage property for minor beneficiaries or individuals with disabilities.
Legal Assistance from a Philadelphia Wills Attorney
If you would like more information about trusts, contact a Philadelphia estate planning lawyer from Caiazzo Law Offices by calling us.