Charlottesville Trusts Attorney
Avoid Taxes & the Expense of Probate with a Trust
One way to hold property is in a trust. With this arrangement, a settlor (or grantor) retitles assets in the name of the trust, and the assets are managed by a trustee for the benefit of one or more beneficiaries. Put simply, trusts are a legal way to hold property, and they have many advantages when used in an estate plan.
If you have a question about trusts, we have answers. Our Charlottesville trust lawyers will review which trusts might benefit you the most and can go ahead and draft the necessary legal documents to accomplish your goals.
Advantages of Using a Trust
Almost anyone can benefit from using a trust. Some of our clients use them with wills or in the place of wills. Specifically, you might use a trust if:
- You hope to avoid the time and expense of probate
- You want to keep your estate plans private
- You want to reduce your taxes
- You wish to shield assets from creditors
- You hope to qualify for government benefits or help a beneficiary qualify
Trusts can accomplish many goals and are a flexible estate planning solution. Instead of guessing which trust will benefit you, please contact a Charlottesville trust lawyer today.
Revocable versus Irrevocable Trusts
There are many types of trusts out there, but we want to review some of the most common features.
Trusts can be revocable or irrevocable. With a revocable trust, the grantor retains the ability to move assets out of the trust after putting them in. Many people create a revocable trust in case they change their mind. However, the control the grantor retains can prevent the trust from accomplishing certain goals, such as reducing taxation.
With an irrevocable trust, the grantor loses control of the asset as soon as it is signed over. For this reason, trusts that offer tax advantages are often irrevocable—the asset is truly no longer in the grantor’s possession.
Reducing Tax Burden
Many trusts can reduce taxes on an estate. Choosing the right one requires the help of a Charlottesville trust lawyer.
Some of the more common include:
- Irrevocable Life Insurance Trust
- Qualified Personal Residence Trust
- Asset Protection Trust
- Charitable Lead Trust
- Charitable Remainder Trust
Our clients are worried about more than estate taxes. They also create trusts to reduce or eliminate capital gains taxes, generation skipping taxes, and more.
Qualifying for Government Benefits
Many government programs are means tested. If you have too many assets, you won’t qualify. Many clients want to leave assets to a disabled child or other relative. Unfortunately, doing so can make a loved one ineligible for badly-needed benefits.
Our lawyers can create a supplemental needs trust, also called a special needs trust. With it, our client can provide assets for needs other than those provided by the government program. When drafted properly, the benefits from the trust do not count against eligibility.
Contact Our Charlottesville Trust Lawyer Today
Creating an estate plan takes skill and experience. For help drafting a trust, please contact MichieHamlett today. We offer a free consultation.