When you come to us to discuss the best way to protect your loved ones and your belongings, we will likely bring up trusts during estate planning. Trusts are a separate legal entity into which you can place property. Once placed inside the trust, the property is owned by the trust. Often trusts are preferred due to their ability to avoid probate as well as certain estate taxes. There are different kinds of trusts, and we will help you decide which types best accomplish your goals. At Michelle Tuschinski, Attorney at Law, our clients become our family, and we always take care of our family.
Trust Terminology
Certain terms are used when speaking of trusts in Virginia. For example, a settlor is the creator of a trust, while a trustee is responsible for trust administration. A trustee can be a person or an entity, such as a bank. A beneficiary receives a benefit from the trust and can be a person, animal, or entity, such as a charity.
While there are a myriad of trust types, some of the most common we set up for our clients include the following:
Revocable Living Trusts
Revocable living trusts are able to be changed after they are created. This means that the settlor can amend or revoke the trust at any point while they are living. Because of this, they are often preferred over irrevocable trusts. Revocable living trusts are sometimes referred to as inter vivos trusts.
Irrevocable Trusts
An irrevocable trust is not able to be changed in part or in whole after it is created by the settlor. Because it is permanent, settlors need to be certain of their intentions prior to establishing an irrevocable trust. They are generally preferred in large estates as they can be utilized as a way to exempt estate taxes. Whether or not an irrevocable trust can help you avoid estate taxes is a question we can address at Michelle Tuschinski, Attorney at Law.
Special Needs Trusts
A special needs trust (SNT) is preferred by settlors who have a family member with special needs that will likely need to receive public benefits. SNTs can hold the assets for the family member, and they are typically able to benefit from the trust but also qualify for state benefits.
Contact Me at Our Firm
If you are looking for advice on the best way to set up your estate, contact Michelle Tuschinski, Attorney at Law to discuss the options available to you, including trusts. We are a small firm with big knowledge, and we are here to provide you with all the guidance and assistance you need.