Are Trusts Still Useful If the Estate Tax Is Repealed?
Published On: July 7th, 2017
With Republicans in control of Congress and the presidency, there is talk of eliminating the federal estate tax. In 2017 the tax affects only estates over $5.49 million, meaning that for more than 99 percent of Americans, it’s already been repealed. With no estate tax, do you still need a trust? While trusts can be used to shelter assets from the estate tax, trusts have many other valuable estate planning uses. A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” The following are some of the benefits of trusts.
Avoiding Probate. One of the biggest benefits of a trust is avoiding the probate process. Probate is the process of administering and settling an estate after someone dies. It can be a costly and time-consuming process. Even with small estates, beneficiaries may not have access to estate funds until a will is filed and an executor appointed. A trust gives beneficiaries immediate access to trust funds. If you have property in multiple jurisdictions, a trust can be especially beneficial in avoiding more than one probate proceeding. Also, probate is a public process—anyone can access court records–while assets distributed in a trust are private.
Protection for Disability. Another benefit of a trust is to provide protection if you become disabled. If you become incapacitated, the trustee can manage your finances without the need to go to court and get a conservatorship or guardianship.
Control. A trust allows you to specifically detail how you want to distribute your assets. For example, you can choose to dole out benefits in small amounts if you don’t want your beneficiaries to receive all your assets at one time. You can also direct how funds in the trust can be spent on a beneficiary. If you have property, the trust can specify who has the right to use the property, whether it can be sold, and how proceeds should be distributed.
Protection from Creditors. Certain types of trusts can be set up to protect beneficiaries from creditors. A properly structured trust can ensure that creditors cannot reach trust funds. This can be helpful if, for example, your intended beneficiary divorces or is the target of a lawsuit.
Providing for a Child with Special Needs. If you have a child with special needs, a trust is particularly important. A special needs trust allows a beneficiary with special needs to receive inheritances, gifts, lawsuit settlements, or other funds without losing his or eligibility for government programs.
Trusts are just one possible part of an estate plan. To know if a trust is right for you, consult with your attorney.
We invite you to access the additional information and resources we have available to help you as you prepare to plan your estate, protect your family and your assets, as well as plan for your future needs.
Attorney Advertising. The information presented on this website is for informational purposes only and should not be construed as a legal advice. Viewing of, responding to, or otherwise transmitting the information on this website is not intended to create, and receipt of the same does not constitute, an attorney-client relationship. The information provided on this website should not be relied upon without first seeking professional legal counsel. The information on this website is provided only as general information which may or may not reflect the most current developments of law. Prior results and cases discussed on this website do not imply and do not guarantee a similar outcome in any other case. The links to other websites contained herein do not constitute a referral or endorsement of any kind.
This Privacy Statement describes how Milvidskiy Law Group P.C. collects, uses, and discloses certain personal information obtained through our public web site at www.thelawofaging.com (the “Web Site”). This Privacy Statement does not address information collection through other sources such as in-person seminars, workshops, or in-person consultations and contacts.
Personal Information Collection and Use
In general, you can visit our Web Site without telling us who you are or revealing any information about yourself. There are times, however, when we ask for personally identifiable information from you, such as your name, company, e-mail address, phone number, and address (“Personal Information”). We request this information in order to correspond with you, to provide you with a subscription to a newsletter or publication, to notify you about events, or otherwise to respond to your requests or provide you with information that we consider may be of interest to you. Where applicable, we will differentiate between personal data fields that are optional and those that are mandatory to obtain the requested information.
If you receive a marketing e-mail from Milvidskiy Law Group P.C., you will be provided with an automated way to opt out (unsubscribe) from that particular communication or from all marketing e-mails sent by our firm. Please follow the instructions on the e-mail you received. If you have received unwanted e-mail from our firm, please forward a copy of that e-mail to email@example.com.
Please note that if you reply to a Milvidskiy Law Group P.C. address in one of our marketing e-mails or otherwise send a communication to us, your communication will not create an attorney-client relationship with us. Do not send us any information that you or anyone else considers to be confidential or secret unless we have first agreed to be your lawyers in that matter. Any information you send us before we agree to be your lawyers cannot be protected from disclosure.
We may share Personal Information among our member attorneys for purposes of responding to your requests or otherwise as necessary for the purposes described above. We may also in limited circumstances share Personal Information with government authorities or others as required to protect the interests of the firm or others, as necessary in connection with the sale or transfer of all or a portion of the business, or as required by applicable law or court order.
International Data Transfers
This Web Site is hosted on a web server in the United States. If you are located in a non-US jurisdiction, your provision of Personal Information or other access to our Web Site constitutes your transfer of such data to the United States, a jurisdiction that may not provide a level of data protection equivalent to the laws in your home country.
Milvidskiy Law Group P.C. maintains appropriate technical and organizational security measures to protect the security of your Personal Information against the loss, misuse, unauthorized access, disclosure or alteration.
Links to Other Web Sites
The privacy practices set forth in this Privacy Statement are for our web site only. This web site may contain links to other sites. Milvidskiy Law Group P.C. is not responsible for the privacy practices or the content of such sites. If you link to or otherwise visit any other site, please review the privacy policies posted at that site.
Cookies and Passive Tracking
A “cookie” is an element of data that can be sent to your browser. Your browser may then store it on your system based on the preferences you have set on your browser. Cookies gather information about your operating system including, but not limited to, browser type, and Internet Protocol (IP) address. The Web Site uses this information to analyze the traffic on our web site, and better serve you when you return to our web site. It is not our intention to use such information to personally identify a user. You have the option to configure your Internet browser to notify you when you receive a cookie, giving you the chance to decide whether to accept it. Further, you have the option to block all cookies. Please note, however, that if you refuse or otherwise block cookies you may not be able to use all of the functionality available on the web site.
Access and Correction
If you wish to access or update the Personal Information you submit through our web site, or to make any inquiries about the processing of such information, please contact us as described below. We provide individuals with access to their Personal Information where we believe appropriate, including in situations where you are entitled to access and review your Personal Information under applicable data protection and privacy laws.
Google ReCaptcha Spam Protection
This site is protected by reCAPTCHA and the Google.