Your estate refers to your financial legacy, or the totality of your assets, and managing how it will pass to your loved ones upon your passing is key. Many people turn to trusts as a means of distributing their assets to their heirs as effectively and efficiently as possible when the time comes. Most of us would prefer that our preferences prevail, and an experienced estates attorney at Mette Law can help residents of Lebanon, PA, make that happen.
Included in Your Estate
Your estate refers to everything that you own, which reflects everything you’ve worked hard for throughout your life. This is your financial legacy, and by engaging in estate planning, you set the stage for your wishes regarding inheritance to be upheld. Your estate planning efforts can also help streamline the distribution process and minimize related expenses.
This is where trusts often come in. A trust is a legal tool that can hold assets and protect them from probate and the state’s long reach in the process. Your estate plans highlight your love and commitment to your heirs, which makes having practical estate planning tools in place paramount.
A Note about Inheritance Tax
Pennsylvania is one of the few states that imposes an inheritance tax. This applies according to the relationship between the person who has passed and the heir in question, and it can amount to a significant financial hit. While revocable trusts generally can’t protect assets from taxation, irrevocable trusts can.
It should also be noted that, while there is a federal inheritance tax, it applies only to very substantial estates. Tax laws, however, are subject to significant change, which makes exploring your best options with a focused estates and trusts lawyer the surest course of action.
Types of Trusts
There are several types of trusts to consider concerning your estate planning.
Revocable Trusts
When you create a revocable trust, you retain control over the assets included during your lifetime. A revocable trust avoids the probate process and can help limit the legal expenses your heirs experience. Revocable trusts also bolster privacy.
Irrevocable Trusts
Once you implement an irrevocable trust, it becomes a separate entity that cannot be altered without the consent of the beneficiaries involved. Irrevocable trusts offer considerable asset protection and can help you minimize estate and inheritance taxes.
Special Needs Trusts
If you have a child or dependent with special needs that preclude them from fully providing for themself, a special needs trust can offer important protections. These include the assets contained in the trust continuing to provide for your loved one without jeopardizing their eligibility for government benefits.
An Estates and Trusts Lawyer Serving Lebanon, PA, Can Help
At Mette Law, we dedicate our practice to helping valued clients like you establish well-considered trusts that uphold their wishes and protect their inheritance rights. We’re here for you, so contact us online or call 717-232-5000 today.