Your Guide to Trusts in Pennsylvania
What is a trust?
A trust is a legal agreement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or multiple beneficiaries.
Trusts can greatly increase your options for managing assets, defining how and to whom they are distributed.
What are the benefits of a trust?
The primary benefit of a trust is that it allows assets to be passed outside of probate.
Additional benefits include:
Everything that happens in probate is public record. A trust keeps the process private.
Trusts give you extensive control over how and when assets are distributed.
Avoiding probate keeps the process away from lengthy court scheduling.
Trusts can help beneficiaries avoid court fees and creditors.
Trusts can be arranged to reduce estate tax burdens.
Trusts can be used to make charitable donations, or create recurring
donations or scholarships.
What are the different types of trusts?
The assets in an irrevocable trust are no longer legally yours, and the trust cannot be revoked without the consent of all beneficiaries.
These trusts are created while the trustor is living, and can be changed by the trustor during their lifetime.
A charitable trust has a non-profit organization as the beneficiary, reducing gift and estate taxes.
These are irrevocable trusts that exclude life insurance proceeds from the taxable estate.
Talk to an attorney to find out what type of trust is right for you.
We give families the peace of mind of knowing the best possible planning is in place.
Speak with an attorney.