Trusts, Drafting and Administration

A trust is also a way that you can provide for disposition of your assets beyond your death. For instance, a husband and wife in a second marriage may benefit from a trust so that upon the first death of a spouse the surviving spouse does not disinherit the first’s spouse’s children. Upon the first death, assets could remain in trust for the lifetime benefit of the surviving spouse, but at the surviving spouse’s death, all assets would then pass to all of the children of both spouses.

Special Needs Trust

A trust can be established for beneficiaries that have special needs and who are or will be receiving government assistance. These trusts can set aside assets for the beneficiary’s supplemental needs. For instance, the trust can be used to provide clothing, entertainment, companions, travel, health club memberships and other benefits for such beneficiary without disqualifying the beneficiary from his or her government benefits. These trusts are different from Medicaid payback trusts in that at the death of the beneficiary the trust assets can then be disbursed to that beneficiary’s heirs, siblings or anyone else who you would want to receive the trust estate after the beneficiary’s death.

Spendthrift Trust

A spendthrift trust is similar to a special needs trust, but addresses the situation where the beneficiary lacks the judgment or ability to use the trust’s assets responsibly. Examples would include beneficiaries who are young and inexperienced or beneficiaries that have a history of substance abuse or emotional problems.

Charitable Trusts

Trusts can be established to leave money to charity while also helping to reduce your capital gains from the sale of appreciated assets that can be placed into such a trust. A charitable trust can be utilized to sell a large holding of stock or other highly appreciated asset, which will avoid capital gains and generate lifetime income for the individual establishing the trust.

Please contact our office to determine how trusts can help you accomplish your objectives in the most cost efficient manner.

Other Non-probate Devises

A simple estate planning technique that can avoid Probate Court is the creation of a transfer on death deed or the establishment of transfer on death beneficiary designation on other assets you may own. There are times when these designations may not be appropriate and can cause future family disharmony. We can counsel you as to the best method of estate planning for your needs.