Utilizing Irrevocable Trusts In Pennsylvania
When setting up trusts as part of the estate planning process in Pennsylvania, you can choose to create a revocable or an irrevocable trust. A revocable trust can be changed before you pass away, so nothing is set in stone. But with an irrevocable trust, in most situations, it cannot be altered after it has been created.
For assistance with this process and creating an effective estate plan, get in touch with Gregory L. Heidt, Attorney At Law. I am attorney Gregory L. Heidt, and I’m a lifelong Erie resident. Not only do I care about this community, but my legal experience goes back to 1978. For nearly 50 years, I’ve been helping people with estate planning and related issues, and I am known for my legal knowledge and careful attention to detail.
Types Of Irrevocable Trusts
There are two main types of irrevocable trusts. The first is called a testamentary trust. The will creates this trust after the person’s passing. The other example is a living trust, which the person sets up during their lifetime. This can be used for a wide variety of goals, and examples include an irrevocable life insurance trust and a charitable remainder trust.
How Does An Irrevocable Trust Work?
An irrevocable trust is helpful because it can hold assets, taking them out of a person’s possession. Because the trust cannot be changed, it owns those assets. The trustee has the authorization to make withdrawals or distributions from the trust, and the funds can then be used as instructed, perhaps by being transferred to the correct beneficiary.
What Is The Purpose Of An Irrevocable Trust?
These trusts can be helpful when protecting assets, protecting access to government benefits or even seeking to reduce estate taxes. For instance, if a beneficiary has special needs, they may qualify for government benefits, but they have to pass a means test. Directly leaving them the inheritance could disqualify them until they spend all of that money. But putting the money into an irrevocable special needs trust can preserve those benefits on their behalf.
Getting The Process Started
If you want to speak to a lawyer about trusts or would like to begin drafting your estate planning documentation, just contact me through the online form or by dialing 814-580-9495 today. I would be happy to meet with you for an initial consultation.