TRUSTS
Trusts are valuable planning tools that allow individuals to manage their assets with flexibility and privacy. Trusts are not, however, “one size fits all” and a poorly drafted or unfunded Trust can have devastating long-lasting impacts. Our attorneys can help you understand if a trust is a good fit for you, and the type of trust that will best suit your needs.
Revocable Trusts
Revocable Trusts, also known as living trusts, are flexible planning instruments that allow grantors (the creators of the trust) to retain control over their assets during their lifetime. The grantor can amend, revoke, or terminate the trust as long as they are mentally competent. Revocable trusts typically become irrevocable upon the grantor’s death. Trust assets generally avoid probate and can provide direct distribution of assets or can hold assets for your family’s benefit. We assist clients in establishing revocable trusts to manage their assets, avoid probate, and provide for efficient asset distribution after their passing. We also provide advice, counsel and services to help you fund your trust, a critical step to the success of a trust. The Trust is often an important part of the estate plan.
Irrevocable Trusts
As the name suggests, Irrevocable Trusts generally cannot be modified or revoked once established. These Trusts are usually employed for specific purposes beyond probate avoidance. For example, Irrevocable Trusts can be used to reduce the grantor’s taxable estate, protect assets, provide for special needs for you or a special needs family member, or provide opportunities for charitable giving. If you need advice and counsel in establishing, administering or just determining whether one of these Trusts is a good fit for you, our attorneys can help.
Other Types of Trusts
Our attorneys have experience in handling different types of Grantor Trusts, Special Needs Trusts, Firearm Trusts, Irrevocable Life Insurance Trusts (ILIT), and Charitable Trusts to name a few.
Grantor Trusts
There are a variety of Grantor Trusts, but the common thread is that the Grantor is treated as the owner of the Trust for income tax purposes. For instance, an Intentionally Defective Grantor Trust is used to freeze assets for estate tax and gifting purposes but not for income tax purposes. An ILIT is an insurance-owning trust can be treated as a Grantor Trust, and is useful for providing cash to an illiquid estate. A Trust with a Grantor-retained interest, such as a Grantor Retained Annuity Trust, is a form of Grantor Trust.
Special Needs Trusts
Also known as a Supplemental Needs Trust, an SNT is designed to provide financial support and enhance the quality of life for individuals with disabilities while preserving their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). This trust allows funds to be used for supplemental needs not covered by public benefits, such as medical expenses, education, housing, transportation, and recreation.
Firearm Trusts
Firearms Trusts, also known as Gun Trusts or NFA Trusts (National Firearms Act Trusts), which are specialized trusts used to legally own and manage firearms, including those regulated under the National Firearms Act (NFA). These trusts are designed to facilitate the acquisition, possession, and transfer of NFA firearms, such as machine guns, silencers (suppressors), short-barreled rifles (SBRs), and short-barreled shotguns (SBS), in compliance with federal and state laws. Other specialty trusts may focus on specific purposes such as education, healthcare, or charitable giving.
Trust Administration
Our attorneys don’t just draft trust agreements, they also help administer them. Trust administration involves managing and distributing assets held in trusts according to the terms outlined in the trust documents. This includes tasks such as asset inventory, beneficiary notifications, tax filings, investment management, and compliance with fiduciary duties. Trust administration is overseen by trustees who act in the best interests of the trust beneficiaries. Our attorneys provide comprehensive services to trustees, beneficiaries, and trust creators, ensuring efficient and compliant trust management and distribution.
