The lawyers at The Elder & Disability Law Center assist clients in creating comprehensive life-care plans using a wide range of estate planning tools. Trusts are one example of the documents we prepare for our estate planning clients in Washington, D.C., Maryland, and Virginia.
Please contact us to schedule a consultation with a Tysons Corner trust lawyer to learn how trusts can benefit you.
The Benefits of Trusts
Trusts are good disability and estate planning tools for the sake of asset protection and financial planning. They allow people to transfer their property into the trust for the benefit of the trustor (creator of the trust) and his or her heirs. This offers several advantages:
- Assets in a trust are protected from certain taxes, including the estate tax, or death tax.
- Assets in a trust are owned by the trust, and thus can be distributed outside of the probate process. Because the assets are owned by the trust rather than an individual, these assets are also protected from creditors trying to collect on outstanding debts.
- A trust can be used to provide for an elderly or disabled loved one without compromising his or her eligibility to receive public benefits.
- Transferring assets out of someone's name and putting them in a trust can help that person qualify for Medicaid.
Types of Trusts
There are several types of trusts available, depending on a person's specific needs and financial goals. Each one serves a different purpose and has different advantages and limitations, so it is important to discuss the options with an experienced attorney. An attorney can help you select the appropriate trust for your situation.
The following are examples of trusts that we can help you establish:
- Revocable trust : A revocable trust (or living trust) is a written agreement between you and the trustee to place your assets in a trust. You can assign yourself as the trustee, thus providing asset protection while allowing you to maintain control over the funds in the trust.
- Credit shelter trust : If your estate is worth more than $3.5 million, you may be a good candidate for a credit shelter trust. A credit shelter trust enables you to take advantage of your estate tax exemption by placing an amount equal to the exemption into a trust for the benefit of your spouse.
- Marital trust : A marital trust can be used in conjunction with a credit shelter trust to maximize estate taxes.
- Irrevocable life insurance trust : An irrevocable life insurance trust helps to reduce the impact of estate taxes by passing down life insurance benefits equal to that of the amount of taxes the estate will owe.
- Supplemental needs trust : A supplemental needs trust (sometimes called a special needs trust) is designed to supplement the public benefits.
Contact Us to Learn More
To learn more about the various types of trusts and how they can benefit you and your family, schedule a consultation with an experienced estate planning lawyer at The Elder & Disability Law Center, in Washington, D.C. Contact us through this website, by phone at 202-769-0207, 866-399-4324, or by e-mail.
We represent clients throughout the Washington, D.C., area, Maryland, and Virginia.