Trusts
Trusts are incredibly versatile tools that can be customized to fit most any situation. Discover how trusts can help protect your assets and ensure your loved ones are cared for according to your wishes.
Revocable Trusts
A Revocable Trust, also known as a Living Trust, is the most common type of trust due to its flexibility and ease of use. Revocable Trusts can be molded to fit any situation. Further, if the client’s personal situation changes, Revocable trusts are easily modified to address any change of circumstances.
Revocable Trusts
A Revocable Trust, also known as a Living Trust, is the most common type of trust due to its flexibility and ease of use. Revocable Trusts can be molded to fit any situation. Further, if the client’s personal situation changes, Revocable trusts are easily modified to address any change of circumstances.
Revocable Trusts
A Revocable Trust, also known as a Living Trust, is the most common type of trust due to its flexibility and ease of use. Revocable Trusts can be molded to fit any situation. Further, if the client’s personal situation changes, Revocable trusts are easily modified to address any change of circumstances.
Revocable Trusts
A Revocable Trust, also known as a Living Trust, is the most common type of trust due to its flexibility and ease of use. Revocable Trusts can be molded to fit any situation. Further, if the client’s personal situation changes, Revocable trusts are easily modified to address any change of circumstances.
Trusts suited to fit your needs
Trusts are foundational in estate planning, valued for their adaptability to diverse needs. With a multitude of trust options available, selecting the right type of trust requires careful consideration. Factors such as finances, health, and family dynamics play crucial roles in this decision-making process.
At Modern Law, our experienced advisors understand these complexities and are dedicated to guiding you toward selecting a trust that fits your unique circumstances. Whether you need a revocable trust for flexibility or a special needs trust with specific restrictions, our team is here to ensure your trust serves you best.
How a Trust Can Help You Avoid Probate
Without beneficiary designations, assets may end up in probate.
Many people wish to avoid probate due to the time and expense associated with probate. If your assets were to end up in probate, your family may need to hire an attorney to access their inheritance, which means expense. Further, if your assets are in probate, then your family must wait until the court resolves ownership rights to the assets. This is an opportunity for potential heirs to fight over who should be the rightful owner of your assets, potentially causing delays in the distribution of your assets.
To avoid the time and expense of probate, our clients often use Trusts to hold their assets upon their passing. Proper beneficiary designations to a Trust can ensure your estate plan follows your wishes. Once assets are in your trust, your trustee can manage and distribute them according to your written instructions in the trust.
Revocable Trusts
A Revocable Trust, also known as a Living Trust, is the most common type of trust due to its flexibility and ease of use. Revocable Trusts can be molded to fit any situation. Further, if the client’s personal situation changes, Revocable trusts are easily modified to address any change of circumstances.
Other beneficial aspects of Revocable Trusts include:
- Asset Protection
- Security & Assurances
- Privacy
- Probate Avoidance
Many clients are interested in the asset protection benefits of revocable trusts. Although not the most full-proof trusts, Revocable Trusts still offer some level of asset protection. A concern for many people is the situation of the heirs. If an heir has debts or goes through a divorce, this could affect their inheritance. Many clients utilize spend-thrift provisions through a Revocable Trusts to protect against outstanding debts and divorces.
Revocable Trusts also offer security and assurances to the creator of the trust. Beyond asset protection, Revocable Trusts address other heir situations. At Modern Law, we address these situations with back-up plans. This may include situations such as an unexpected passing or a major accident. For example, if you were to pass away unexpectedly while your children are still minors, your Revocable Trust would be able to hold the assets until your children reach a mature age. Or, for example, if one of your beneficiaries were to pass away prior to receiving their share, what happens with the share? Or even the situation where a beneficiary has special needs? Our Revocable Trusts address these situations and more so that you can rest assured all bases are covered.
Irrevocable Trusts - Medicaid Asset Protection Trusts
Medicaid Asset Protection Trusts (MAPT) are a restrictive type of irrevocable trust often utilized to protect real estate and other assets from nursing home liens. These special types of trust function to remove assets from your name (thus protecting assets from liens), while still preserving the stepped-up tax basis for inheritance.There is no question about it, Nursing Homes are expensive. Medicaid Asset Protection Trusts offer the ability to shield a personal residence from nursing home liens through advanced planning. The general idea behind Medicaid trusts is to remove assets from your individual name while you are healthy, well in advance of the nursing home. If done correctly, five years in advance, any assets held within the Medicaid trust will not be visible to the nursing home nor Medicaid, and thus, not able to be affected by nursing home costs.
It is important to utilize the Medicaid trust in Medicaid planning to preserve the stepped-up basis. Many individuals attempt to transfer the property to their family, however, this fails to preserve the stepped-up basis. Failure to preserve the stepped-up basis can equate to substantial tax burdens for heirs, in that, a capital gain tax will be owed on any assets transferred incorrectly.
Special Needs Trusts
Modern Law recognizes the diverse challenges faced by individuals with special needs, whether the challenges involve mental or physical disabilities, or difficulties managing finances. We collaborate closely with families to develop comprehensive plans that prioritize the well-being and security of these individuals. With Modern Law, you can establish a Special Needs Trust that provides financial stability and peace of mind, ensuring your most vulnerable family members are cared for in the years ahead.
Other Custom Trusts
Beyond general probate avoidance and Medicaid planning, there are numerous other estate planning considerations that can be addressed through a trust. Whether it be family concerns, financial concerns, or health concerns, Modern Law can draft a trust suited to your needs.
It is important to utilize the Medicaid trust in Medicaid planning to preserve the stepped-up basis. Many individuals attempt to transfer the property to their family, however, this fails to preserve the stepped-up basis. Failure to preserve the stepped-up basis can equate to substantial tax burdens for heirs, in that, a capital gain tax will be owed on any assets transferred incorrectly.
Contact Us
Have a question about setting up a trust? Contact our experienced team to take the first step towards securing your future.