Trusts Attorney in Sunset Hills, Missouri
Having a well-prepared estate plan can bring you peace of mind knowing that your wishes will be followed and your loved ones will be taken care of when you die. There are various types of estate planning and administration documents. One of the most important components of estate planning is known as trust. A skilled Sunset Hills estate planning attorney can help you understand the benefits of setting up a trust.
At Doyel Law Firm, we are committed to providing legal advice to individuals of all ages and backgrounds with their estate planning needs. We are located in Sunset Hills, Missouri, and represent clients and families throughout the surrounding areas. Our estate planning law firm can help you draft wills, set up trusts, avoid probate, and deal with all other legal issues related to estate planning.
Contact us now and schedule an initial consultation.
What is a Trust?
Trusts are an essential part of a comprehensive estate plan. It is a fiduciary relationship in which one party (the trustor), gives another party (the trustee), the right to hold title to assets for the benefit of a third party (the beneficiary). It is designed to minimize difficulties and maximize asset protection. Trusts can be used to transfer the ownership of assets from generation to generation with minimal taxation.
Setting up a trust is one of the most commonly used estate planning tools, especially if you want to leave assets to your loved ones without undergoing the probate process. However, establishing trust is not easy as it may seem. The grantor must create a trust agreement, which is a legal document that designates the grantor, the trustee, and the beneficiaries, and outlines how the trust assets are to be managed and distributed. A knowledgeable Sunset Hills trusts lawyer can help you prepare the necessary paperwork to set up a trust for your estate.
Which Type of Trust Is Right For You?
There are different types of trusts, and each has its own rules and benefits. State laws vary significantly in the area of trusts and should be considered before making any important decision. Trusts are categorized based on their structure, validity, and type of beneficiaries. There are different reasons for choosing each type of trust, and our credible Sunset Hills trusts lawyer can help determine which is best for you.
Revocable Living Trusts
A revocable living trust is created during your lifetime and can be altered or revoked while you’re alive. You can change the beneficiaries and assets as long as you’re alive and physically and mentally able to do so. It is extremely helpful in avoiding probate litigation. Although a revocable trust may help skip the lengthy probate process, it is still subject to estate taxes.
This type of trust is flexible and can be dissolved at any time, should your intentions change. This enables the trustor to take into account any change of circumstances such as marriage, divorce, or disability. Revocable trusts automatically become irrevocable upon the death of the grantor.
Once you establish an irrevocable trust, you will lose control over your assets and you can no longer change any terms or decide to dissolve the trust. You have legally removed any rights to ownership to anything you put in the trust. These trusts cannot be altered, changed, modified, or revoked once they are created.
This type of trust is usually used for tax planning and asset protection. If your main goal is to reduce the amount subject to estate taxes by removing the trust assets from your estate, then setting up an irrevocable trust can be your best option. Since the assets have been transferred to the trust, you are relieved of the tax liability on the income generated by the trust assets. If you’re thinking about establishing a trust, it is best to consult a seasoned trusts attorney in Sunset Hills to help you determine whether an irrevocable trust will work for you.
Special Needs Trusts
Special Needs Trusts, also known as the Supplemental Needs Trusts, are created for physical or mentally disabled persons under the age of 65. By establishing this type of trust, the beneficiary can obtain the benefits from the trust without jeopardizing any eligibility for United States government benefits such as Social Security, Supplemental Security Income, Medicare, or Medicaid. The assets held in the trust do not count to qualify for government assistance, as long as the beneficiary will use the money for expenses other than food and shelter.
Setting up a special needs trust for your loved one can help you enhance their quality of life and give you peace of mind. It is designed not to provide basic support, but instead to pay for comforts and luxuries that could not be paid for by public assistance funds. These trusts ensure that a beneficiary with functional needs will receive the financial support they need throughout their lifetime, even after the trustor dies.
Life Insurance Trusts
Setting up an irrevocable life insurance trust (ILIT) can help you better manage taxes and other implications of passing assets to the next generation. Once the life insurance policy is placed in the trust, the insured person no longer owns the policy. As a result, the proceeds are not counted in your estate when you die. It will be managed by the trustee on behalf of the policy beneficiaries when the insured person dies. The trustee can guarantee a young heir doesn’t squander his or her inheritance while ensuring the grantor’s wishes are followed.
Having a life insurance trust can help reduce or eliminate estate taxes. Large estates may be able to legally reduce tax liabilities with an ILIT. Since you don’t personally own the insurance, it will not be included in your estate—so estate taxes are reduced. A reliable trusts attorney in Sunset Hills MO can help you understand the benefits of a life insurance trust.
A charitable trust allows you to set up your assets to benefit you, your beneficiaries, and a charity. This type of trust is usually established during the grantor’s lifetime and is irrevocable. It requires you to give up legal control of your assets permanently.
This type of trust can reduce your estate through charitable donation, which helps lower estate taxes. Charitable trusts can also be structured to provide a reliable income stream to you and your beneficiaries. This may be a good option if you have a desire to create a legacy with some of your assets.
Hire our Experienced Sunset Hills Trusts Attorney Now!
A trust can be a valuable estate planning tool with potential benefits. Trust administration not only avoids probate but also expedites the entire inheritance process.
When considering a trust, it is highly recommended to seek legal advice from our competent Sunset Hills trusts attorneys at Doyel Law Firm to guide you in making the best decisions for yourself and your loved ones. Our estate planning law firm can help you determine if a trust is right for you and your estate planning needs. We will clearly explain your options to you in detail before you finalize your trust. We will be with you every step of the way.
Call us now to schedule an initial consultation.