Contact a Seattle Trust Lawyer to Understand Your Options
Estate planning has many moving parts, and trusts are one of the tools that a Seattle trust lawyer can use to protect your assets. Often designed to avoid probate, save money on taxes and protect assets from Medicaid, trusts are a legal tool to manage your property.
You may or may not need a trust – we can discuss your options with you – but they’re something worth considering as part of your overall estate plan.
A trust and a Will often work together to give you greater control over your estate.
At ELG Estate Planning, we help residents of Seattle and the surrounding area with:
We can help draft a Will that protects your assets and allows you to name trustees who can take control of the trust upon your death.
Call us at (206) 203-8017 or contact us to discuss your trust options with us.
What is the Difference Between a Will and a Trust?
You may have a Will, and you definitely should, but you may still need a trust. A Will allows you to create a set of instructions that:
- Name an executor of the Will
- Name guardians for minor children
- Transfer your assets to the beneficiaries you name
A Will is filed with the court to start probate following your death. A living trust does not require probate if properly funded. A living trust should be funded while you’re alive, which means that it will own the assets within it. You can still be the trustee and have control of the assets during your lifetime.
Trusts are a legal tool, like a Will, but more complicated. There are many types of trusts that may fit into your unique situation. For example, you may have a special needs child or grandchild. You can create a special needs trust to transfer wealth and care for them without impacting their eligibility for certain government benefits.
What Are the Different Types of Trusts?
Multiple trust types exist, and the right one for your estate will depend on your unique situation. As your Seattle trust lawyer, we’ll guide you to the right type of trust(s) that will offer your estate robust protection.
We may recommend one or a combination of the following trust types:
Revocable or Living Trust
A revocable living trust is a legal tool when the grantor is often the trustee and beneficiary of the trust. You would transfer assets to the trust and access them as a trustee, but in Washington, this type of trust does not offer you Medicaid protection of the assets.
You can add, remove or terminate the trust at any time.
An irrevocable trust is another possibility, but it offers you less control because it cannot be modified easily without approval from the beneficiary or a court.
Marital Trusts or Credit Shelter Trusts
A marital trust allows the transfer of assets to your surviving spouse to avoid or minimize estate taxes.
Your spouse can still access the assets in the trust, which will be transferred to beneficiaries when the spouse dies.
Special Needs Trust
If you have a spouse who is or who may become disabled in the future or a child or grandchild with a disability, a special needs trust is a legal tool that protects assets for them while still allowing them to remain eligible for government benefits.
Grandchildren and Minor Trusts
Your Seattle trust lawyer can help you create trusts for minor children and grandchildren, too. Some options may include creating trusts for:
- Education
- Support and maintenance
- Reaching certain life milestones
For example, a trust will limit the beneficiary’s access to the assets based on specific terms.
Medicaid Trust
A Medicaid trust, or Medicaid Asset Protection Trust (MAPT), is a trust designed to protect assets and exclude them from being counted for Medicaid eligibility. A MAPT can help a person qualify for Long-Term Care.
Because there is a five-year lookback period and other caveats, it’s important to work with an experienced Seattle trust lawyer when creating your MAPT. A lawyer will help ensure that your trust and the transfer of assets doesn’t disqualify you from Medicaid.
Spendthrift Trusts
A spendthrift trust is set up to regulate a beneficiary’s access to the assets held within it. This type of trust can give you peace of mind that your beneficiaries are taken care of and that your assets are distributed according to your wishes.
Spendthrift trusts can be revocable or irrevocable. They include what is known as a spendthrift clause, which prevents the beneficiary from assigning their interest in the trust or otherwise depleting its assets.
Beneficiaries will still receive the assets, but they will be distributed over time according to the terms schedule created by you and the trustee.
Pet Trusts
A pet trust is a special type of trust designed to provide care and money for your pets when you can no longer do so yourself. It can operate during your lifetime or after your death, depending on your wishes.
Pet trusts typically are established by your Will. Pets are the beneficiaries of these trusts, and trustees will be in charge of using the funds to pay for housing, food and care.
How Can an Attorney Help with the Creation and Administering of a Trust?
Trusts are beneficial Seattle estate planning tools that can:
- Give you more control over how your property is distributed
- Help minimize or avoid taxes
- Keep your affairs private (trusts can operate privately)
In order to enjoy the benefits that trusts have to offer, they must be set up properly. Here is where an attorney’s knowledge and experience will give you an advantage.
An attorney will ensure that a trust is set up to properly execute the trustee’s wishes. They can also provide valuable guidance and insights. Trusts can be used in creative ways to achieve certain goals, such as reducing estate taxes or allowing a beneficiary to qualify for some type of government benefit.
An attorney will explain your options and utilize their experience to form a trust that ensures your instructions are carried out.
How to Choose the Best Seattle Trust Lawyer Near You
Trusts are often part of a larger estate plan that can protect your assets and ensure your last wishes are carried out. A Seattle trust lawyer can help you navigate the process of choosing and forming a trust, but it’s important to choose the right person for the job.
There are several things to consider when choosing a lawyer. Some of the most important considerations include:
- Does the lawyer have experience with creating and administering trusts? Attorneys who focus on estate planning can help you understand your options and achieve your goals.
- Is the lawyer compassionate? Do they explain things in a way you can understand? Do their communication policies meet your standards?
- What is the fee structure? At ELG Estate Planning, we are transparent about our fees, so you know what to expect.
For over nearly two decades we have been helping clients with their unique needs. If your goal is to form a trust, we can explain your options and assist with the formation and administration process.
Contact us today to schedule a consultation.