Estate Planning - Comprehensive Trust Planning Services

Understanding Trusts

A trust is a legal arrangement where a trustee holds and manages assets for the benefit of designated beneficiaries. Trusts offer flexibility, asset protection, and tax advantages that wills alone cannot provide.

Types of Trusts We Offer

Revocable Living Trust

The most popular trust for estate planning:

• Complete Control: You maintain full control during your lifetime
• Flexibility: Can be modified or revoked anytime
• Avoid Probate: Assets transfer immediately to beneficiaries
• Privacy: No public court proceedings
• Incapacity Planning: Manages assets if you become unable

Best For:

• Avoiding probate delays and costs
• Maintaining privacy
• Managing multiple properties
• Planning for incapacity
• Simplifying estate administration

Irrevocable Trust

Permanent trust with significant tax benefits:

• Estate Tax Reduction: Removes assets from taxable estate
• Asset Protection: Shields from creditors and lawsuits
• Medicaid Planning: Helps qualify for benefits
• Charitable Giving: Enables strategic philanthropy

Best For:

• Large estates with tax concerns
• Asset protection needs
• Medicaid planning
• Charitable giving strategies

Special Needs Trust

Protects disabled beneficiaries:

• Preserves Benefits: Maintains SSI and Medicaid eligibility
• Quality of Life: Funds extras not covered by benefits
• Professional Management: Trustee handles finances
• Long-term Care: Ensures lifetime support

Best For:

• Disabled children or dependents
• Beneficiaries receiving government benefits
• Parents planning for after their passing
• Ensuring lifetime care and support

Testamentary Trust

Created through your will:

• Delayed Distribution: Controls when beneficiaries receive assets
• Minor Children: Manages inheritance until maturity
• Spendthrift Protection: Protects against poor financial decisions
• Creditor Protection: Shields beneficiary assets

Best For:

• Young beneficiaries
• Beneficiaries with substance abuse issues
• Managing inherited wealth
• Providing structured distributions

Charitable Remainder Trust

Combines philanthropy with income:

• Income Stream: Provides income during your lifetime
• Tax Deduction: Immediate charitable deduction
• Estate Reduction: Removes assets from taxable estate
• Legacy: Supports favorite charities

Best For:

• Highly appreciated assets
• Charitable giving goals
• Retirement income needs
• Tax planning strategies

Dynasty Trust

Multi-generational wealth transfer:

• Generation-Skipping: Avoids taxes for multiple generations
• Asset Protection: Protects wealth from creditors and divorces
• Family Legacy: Preserves wealth for descendants
• Control: Maintains family control over assets

Best For:

• Substantial wealth
• Multi-generational planning
• Asset protection concerns
• Family legacy goals

Benefits of Trust Planning

Avoid Probate

• Speed: Assets transfer immediately, not months or years
• Cost: Eliminate court fees and costs
• Privacy: No public disclosure of assets or beneficiaries
• Simplicity: Easier for family during difficult time

Asset Protection

• Creditor Protection: Shield assets from lawsuits
• Divorce Protection: Protect inheritance from divorce
• Bankruptcy Protection: Preserve family wealth
• Medicaid Planning: Protect assets while qualifying for care

Tax Planning

• Estate Tax Reduction: Lower or eliminate estate taxes
• Gift Tax Strategies: Strategic gifting programs
• Generation-Skipping Tax: Efficient multi-generational transfers
• Income Tax Planning: Minimize income tax burden

Control and Flexibility

• Distribution Control: Decide when and how beneficiaries receive assets
• Spendthrift Protection: Protect beneficiaries from themselves
• Incentive Provisions: Encourage education, work, or sobriety
• Professional Management: Ensure proper asset management

Our Trust Planning Process

Phase 1: Discovery and Analysis

We comprehensively review:

• Family structure and dynamics
• Asset inventory and values
• Current estate plan (if any)
• Tax situation and projections
• Goals and concerns
• Special circumstances

Phase 2: Trust Design

We create a customized plan including:

• Appropriate trust type(s)
• Trustee selection
• Beneficiary designations
• Distribution provisions
• Tax optimization strategies
• Asset protection features

Phase 3: Documentation

We prepare comprehensive documents:

• Trust agreement
• Pour-over will
• Powers of attorney
• Healthcare directives
• Beneficiary designations
• Transfer instructions

Phase 4: Trust Funding

We guide you through transferring assets:

• Real estate deed transfers
• Financial account retitling
• Business interest transfers
• Personal property assignments
• Beneficiary designation changes
• Life insurance ownership transfers

Phase 5: Ongoing Support

We provide continued assistance:

• Annual reviews and updates
• Trust amendments as needed
• Successor trustee guidance
• Tax return preparation referrals
• Trust administration support
• Life event consultations

Trust Funding: Critical Step

A trust only controls assets properly transferred to it. We help fund your trust with:

Real Estate

• Prepare and record new deeds
• Transfer title to trust
• Update insurance policies
• Notify mortgage companies
• Handle homestead issues

Financial Accounts

• Bank accounts and CDs
• Brokerage accounts
• Retirement account beneficiary updates
• Life insurance ownership
• Annuity beneficiary changes

Business Interests

• Corporate stock transfers
• LLC membership interest assignments
• Partnership interest transfers
• Operating agreement updates

Personal Property

• Valuable collections
• Vehicles and boats
• Jewelry and artwork
• Intellectual property
• Digital assets

Trustee Selection

Choosing the right trustee is crucial:

Individual Trustee

Advantages:

• Personal knowledge of family
• No fees (usually)
• Flexible and responsive
• Understands your wishes

Disadvantages:

• May lack expertise
• Can create family conflicts
• Susceptible to pressure
• May die or become incapacitated

Corporate Trustee

Advantages:

• Professional management
• Investment expertise
• Objectivity and fairness
• Perpetual existence
• Legal liability coverage

Disadvantages:

• Fees for services
• Less personal relationship
• May be less flexible
• Minimum asset requirements

Co-Trustees

Combines strengths of both:

• Individual provides family knowledge
• Corporate provides expertise
• Shared decision-making
• Checks and balances

When to Create a Trust

Consider trust planning if you:

• Own real estate in multiple states
• Have a net worth over $1 million
• Want to avoid probate
• Have minor children
• Have a disabled beneficiary
• Own a business
• Are concerned about privacy
• Want to control distributions
• Have blended family issues
• Need asset protection

Trust Administration After Death

When you pass, we guide your trustee through:

• Trust administration procedures
• Asset marshaling and valuation
• Creditor notification and payment
• Tax return preparation
• Beneficiary distributions
• Final accounting
• Trust termination (if applicable)

Trust Taxation

Understanding trust taxes is essential:

Income Tax

• Revocable trusts: Reported on your personal return
• Irrevocable trusts: Separate tax return required
• Trust income tax rates: Compressed brackets
• Distributions: May pass income to beneficiaries

Estate Tax

• Revocable trusts: Included in taxable estate
• Irrevocable trusts: Often excluded from estate
• Current exemption: $13.61 million (2024)
• Portability: Spouses can combine exemptions

Gift Tax

• Transfers to irrevocable trusts may be taxable gifts
• Annual exclusion: $18,000 per beneficiary (2024)
• Lifetime exemption: Same as estate tax
• Crummey powers: Convert to annual exclusion gifts

Common Trust Provisions

Spendthrift Clause

Protects beneficiaries from:

• Creditor claims
• Divorce settlements
• Poor financial decisions
• Fraudulent schemes

Discretionary Distributions

Trustee decides:

• When to distribute
• How much to distribute
• Purpose of distributions
• Considering beneficiary circumstances

Educational Incentives

Encourage beneficiaries to:

• Complete college degrees
• Pursue graduate education
• Achieve academic milestones
• Develop skills and careers

Health and Support Provisions

Ensure beneficiaries receive:

• Medical care and treatment
• Reasonable living expenses
• Educational opportunities
• Emergency assistance

Trust Modification and Termination

Trusts can be modified through:

Revocable Trusts

• Amendment by trustor anytime
• Complete revocation if desired
• Restatement for major changes

Irrevocable Trusts

• Court petition (difficult)
• Decanting to new trust
• Beneficiary consent (all must agree)
• Trust protector provisions

Cost and Investment

Trust planning is an investment in your family's future:

Factors Affecting Cost

• Estate complexity and size
• Number and type of trusts
• Asset types and locations
• Family dynamics
• Tax planning needs

What's Included

• Comprehensive consultation
• All trust documents
• Supporting documents
• Funding guidance
• Review sessions
• Educational materials

Long-term Value

• Probate cost savings: Thousands to tens of thousands
• Potential tax savings: Hundreds of thousands or more
• Asset protection: Priceless
• Family harmony: Invaluable
• Peace of mind: Beyond measure

Get Started with Trust Planning

Protect your legacy and provide for your loved ones. Schedule a consultation to discuss how trusts can benefit your family.

Schedule Your Consultation

Contact us today to:

• Discuss your estate planning goals
• Learn which trusts suit your needs
• Understand costs and timelines
• Begin protecting your legacy

What to Bring

• List of assets and approximate values
• Current estate planning documents
• Information about beneficiaries
• Questions and concerns
• Tax returns (last 2 years)

Our experienced estate planning attorneys will create a customized trust plan that provides security, flexibility, and peace of mind for you and your family.