From wills to advance directives, Pennsylvanians have many options for creating comprehensive estate plans. Which estate planning tools are right for you and your family may depend on the size of your estate, tax burden, and personal goals. For many residents of the Keystone State, creating an irrevocable family trust is an integral part of the estate planning process.
At Ruggiero Law Offices, LLC, our knowledgeable estate planning attorneys want you to have the right information to make the best decisions for your future. Here's what else you should know.
What Is an Irrevocable Family Trust?
With an irrevocable trust, you transfer ownership of your assets to the trust, making them no longer yours. Changing, amending, or terminating an irrevocable trust requires the consent of all trust beneficiaries. Here are some of its advantages you might consider.
Providing For a Relative With a Disability
If you have an immediate family member who has a disability, creating an irrevocable family trust may give them access to disbursements without jeopardizing eligibility for certain types of government benefits. Because funds in the trust typically don't count as income, your relative may still qualify for Medicaid, Supplemental Security Income, or other income-tested public benefits.
Lowering Your Estate Taxes
While tax law is complex, creating an irrevocable family trust may help you avoid some estate taxes. When you form the trust and transfer assets into it, your assets are no longer part of your estate. Because your estate is less valuable, your heirs may have a lower estate tax bill.
Protecting Your Family’s Interests
A major advantage of an irrevocable family trust is the trustee you designate to oversee it. This person complies with recordkeeping and tax obligations. They may also protect your family’s interests by closely scrutinizing disbursements from the trust before approving them. Ultimately, if you worry your kids may squander your wealth, the trustee's oversight may put your mind at ease.
Since 1990, Ruggiero Law Offices have delivered tailored solutions. Our clients trust us because we take the time to understand their unique circumstances and provide straightforward guidance without confusing jargon or extra hassles. If you have more questions about whether an irrevocable family trust makes sense in your estate plan, please call us.