How Does A Living Trust Apply in Pennsylvania?
In Pennsylvania, a living trust is a legal agreement in which the testator’s assets, including bank accounts, home, securities, etc., can be transferred and handled by an individual, including the testator, or corporation, such as a trust or bank. The person or company managing the trust is called a trustee. The trustee manages the trust according to the written directions outlined in a trust document.
The need for a revocable living trust is dependent on the testator’s family circumstances, financial status and objectives. In Pennsylvania, the advantage of establishing a living trust only to avoid probate is questionable because in Pennsylvania, the cost of probate is reasonable and less time-consuming than in several other states. Additionally, in Pennsylvania, a revocable living trust does not help reduce taxes. The Pennsylvania Inheritance Tax and Federal Estate Tax are identical, regardless of whether assets are managed through a revocable living trust or under a will. Moreover, estate planning methods created to lower taxes are accessible under wills to the same degree that they are accessible under revocable living trusts.
Other Frequently Asked Questions
- Does Probate Administer All of The Decedent’s Property?
- How Can I Minimize The Taxes For My Estate?
- How Does A Living Trust Apply in Pennsylvania?
- How Does the Medicaid Look-Back Period Work?
- How Should I Plan For My Minor Children?
- Should You Discuss Your Estate Plans With Your Adult Children?
- What Are the Most Common Estate Planning Mistakes?
- What Is A Special Needs Trust?
- What Is A Spendthrift Trust?
- What Is A Will Contest?
- What Is Probate in Pennsylvania?
- What Is The Difference Between Medicare and Medicaid?
- What Is The Purpose of a Special Needs Trust?
- What Is The Simplified Probate Procedure For Small Estates in Pennsylvania?
- What Seniors Need to Know About Strategic Gifting
- What Taxes Will Apply to My Estate After My Death?