Tri-Cities Trust Attorney
At ELG Estate Planning, we understand that Trusts can be complicated. As your Tri-Cities trust attorney, we can help you create a Trust that will benefit your estate plan by:
- Becoming the legal owner of certain property
- Shielding assets from public view
- Reducing or avoiding taxes
- So much more
Estate planning has many options. Since 2006, we’ve skillfully helped residents of the Tri-Cities. Our Kennewick office serves Kennewick, Pasco, Richland, and West Richland.
You may need a Trust to achieve your estate planning goals, and there are multiple options that may fit into your plan perfectly. However, Trusts are not necessary for every estate.
Not sure if you need a Trust or if it fits into your estate plan?
WHAT IS A TRUST?
Trusts exist in many forms and are part of a greater estate plan. They are legal entities that have a trustee and a trust beneficiary. You can transfer assets to a Trust, and Trusts provide benefits, such as:
- Assets in the Trust can avoid probate.
- Certain taxes are eliminated or reduced via the right type of Trust.
- Set conditions for asset-distribution, so your wishes for your estate are always met.
- Protect your estate and its privacy.
You can have a Trust created during your lifetime while maintaining access to the assets, or you can have a Trust for your beneficiaries created within a Will.
ARE TRUSTS ONLY FOR THOSE WHO ARE CONSIDERED “WEALTHY?”
Caring.com’s 2024 survey found that only 32% of people have a Will and even fewer have a Trust.
Why?
A staggering 4 out of 10 respondents believe that they’re “too poor” to have a Will or Trust. As a Tri-Cities trust attorney, we’re here to tell you that Trusts can be created for any estate.
You don’t need to be among the top 1% of earners to have a Trust.
If a Trust fits into your estate plan, they’re a valuable tool that is often easy to create and can help you:
- Protect your estate
- Avoid estate tax
- Leave money for a special needs child
- So much more
We can help advise you on the best Trust option for your estate and unique needs.
WHAT ARE THE DIFFERENT TYPES OF TRUSTS YOU CAN HELP ME WITH?
Trusts come in many forms, which may include:
Revocable Or Living Trust
A revocable, or living Trust, is one created during your lifetime. The trustee is often the beneficiary and grantor, and they may be ideal for avoiding probate. You can leverage a living Trust to protect your estate when you’re incapacitated, and they grant greater control over your finances.
However, if you’re creating one of these Trusts to qualify for Medicaid, a revocable living Trust is the wrong tool and won’t provide for Medicaid eligibility.
Can Trusts be irrevocable?
Yes. A Trust can be created that cannot be terminated or modified. An irrevocable Trust might be the right estate planning tool for Medicaid eligibility.
Marital Trusts, Bypass Trusts, Credit Shelter Trusts
A marital bypass or credit shelter Trust is a tool used by married couples to remove assets from the estate of the surviving spouse to take advantage of the estate tax exemption of the first spouse to pass. The advantage of this is that the exemption removes the assets from the taxable estate of the surviving spouse and allow the assets to grow without additional estate taxes in the future.
Special Needs Trust
If you have a special needs person in your life, one of the main reasons to hire a Tri-Cities Trust attorney is to create a special needs Trust. The Trust can help the person maintain eligibility to receive government benefits while having the benefit of the assets in the trust.
Otherwise, if certain assets are owned by the person, they may be disqualified from needs-based government benefits.
Grandchildren Trusts
If you want to skip a generation and provide assets for the benefit of grandchildren, a trust can offer this flexibility, too. Your attorney can help you design a Trust that provides protection and assets to your grandchildren and even set specific requirements that must be met before distribution can occur.
Minor Trusts
A minor Trust can provide financial security to a child or a younger loved one. Property and other assets can be left to minor beneficiaries while ensuring that the Trust is handled by a designated trustee until the child reaches the age of majority and beyond if desired.
Supplemental Income Trust
Families can help care for loved ones with disabilities without impacting their government needs-based benefits through a supplemental income Trust. These Trusts are funded by assets owned by family members, and the funds can be used to help pay for other needs, such as entertainment, education or medical care. Supplemental income Trusts must be created and funded with care and, ideally, by an experienced Trust attorney.
Medicaid Trust
An estimated 70% of adults who reach the age of 65 will need some form of long-term care. Medicaid can help cover the cost of this care, but you must meet income and asset requirements to qualify.
A Medicaid Trust can help you preserve assets and still qualify for benefits. However, there are strict rules that must be followed. At ELG Estate Planning we have extensive experience assisting clients with Medicaid Trust formation and can help you understand the qualification process.
Spendthrift Trusts
A spendthrift Trust typically is simply a clause within most types of Trusts. Distributions are made according to the terms of the Trust and the beneficiary is not allowed to invade the trust and spend the funds unwisely.
Rather than distributing assets all at once, spendthrift Trust clauses allow you as the creator of the Trust to set the rules for how the money is spent and when it’s released to or for the benefit of the beneficiary.
Pet Trusts
Pets are valued and loved members of the family. They rely on us for shelter and care, and in exchange, they provide unconditional comfort and companionship. A pet Trust can help ensure that your beloved companion is cared for by a person (or persons) of your choosing after you are gone and in a manner you specifically prescribe and with the necessary funds to care for your beloved pet.
WHAT HAPPENS WHEN THE TRUST IS DISBURSED?
Trust administration can be complicated. Before assets can be distributed to beneficiaries, debts and expenses must be paid.
Disbursements are made from the Trust to cover outstanding debts (credit cards, mortgages, car loans, etc.), funeral expenses and the ongoing costs of administrating the Trust.
Once all outstanding debts and final taxes are paid, distributions can be made to beneficiaries according to the decedent’s wishes. The Trust closes once everything has been passed to beneficiaries.
Trust administration can quickly become stressful and overwhelming. An attorney can assist with the process to ease this burden and provide valuable guidance.
HOW CAN AN ATTORNEY HELP ME WITH THE CREATION OF A TRUST?
Although DIY options exist for creating Trusts, hiring an attorney is in your best interest.
Trusts are often more complex than they appear. For example, maybe you wish to form a Trust with:
- Conditions for beneficiaries
- Requirements to maintain funding
An experienced Trust attorney can help ensure that your trust is set up properly and achieves your goals.
An attorney can also eliminate the stress and burden of having to determine which type of Trust is right for you and completing the necessary documentation to form the Trust.
If you’re interested in creating a Trust for your estate plan, contact ELG Estate Planning today to schedule a consultation with a Tri-Cities Trust attorney.