Living Trusts

Bucks County Living Trust Attorney

A living trust is one of the most effective tools for managing assets during your lifetime and ensuring a smooth transfer of property after your death. Unlike a will, a living trust operates while you are still alive. This gives you full control over your assets while also providing some important benefits to your estate plan.

If you are considering this type of estate planning tool, a Bucks County living trust attorney can help you understand your options and create a plan that fits your goals.

What Is a Living Trust?

A living trust is a legal entity created during your lifetime in which you transfer ownership of your property to the trust. The trust becomes the legal owner of these assets, but there will also be designated beneficiaries who are intended to inherit this property at a certain time. The person who creates the trust is known as the grantor, and the individual or institution managing the trust is called the trustee.

In many cases, the grantor also serves as the initial trustee, allowing them to retain control over the assets during their lifetime. You can also name a successor trustee to take over in cases where you aren’t able to manage the funds in the future.

Living trusts in Pennsylvania are governed by the state’s trust laws, including provisions found in 20 Pa. Cons. Stat. § 7701 et seq. The statute outlines how trusts are created and administered in Bucks County.

One of the primary advantages of a living trust is that assets held in the trust can pass to beneficiaries without going through probate. Because of the complexity that comes with setting up a trust in a way that complies with the law, it’s a good idea to rely on the guidance of a Bucks County living trusts attorney.

The Difference Between a Revocable and Irrevocable Living Trust

Living trusts come in two different forms: revocable and irrevocable. Understanding the differences between the two is important if you are including a trust in your estate plan.

A revocable living trust allows you to retain control over the trust assets while you are still alive. You can change the terms or even revoke the trust entirely without needing court approval. These trusts are flexible, but they don’t have all the benefits of an irrevocable trust.

An irrevocable living trust limits your control over your assets the moment you transfer ownership. In general, you can’t revoke the trust or alter the terms unless you get a court order first. However, this lack of control provides you with some benefits related to tax obligations or qualifying for certain benefits.

Before you decide how to proceed, consider discussing your options with our team. A Bucks County living trust attorney from our firm offers you the kind of experienced counsel you deserve.

The Process for Establishing a Living Trust

Creating a living trust involves several important steps. They include the following:

Identifying Your Goals

Before you establish a living trust, you’ll need a clear set of goals to strive for. Do you hope to simplify the inheritance process for your children? Are you concerned about tax obligations? Our attorneys can drill down to find your specific goals.

Choosing a Trustee

You will next select a trustee to manage the trust assets. Many people choose themselves as the initial trustee and name a successor trustee to take over if needed, but that doesn’t have to be the case.

Drafting the Trust Document

The trust document outlines the terms of the trust, and there’s a good deal of flexibility in the terms you include. This document spells out how your assets will be managed and who the beneficiaries are.

Funding the Trust

Creating the trust document alone is not enough. The next stage of this process is funding the trust. The term “funding” means transferring the ownership of your assets so that the trust is the legal owner.

Reasons You Need an Attorney for Your Living Trust

Living trusts are powerful tools, but they must be properly structured to work as intended. Some of the reasons to rely on a Bucks County living trust lawyer include the following:

Ensuring Legal Compliance

Trusts must comply with Pennsylvania law to be valid, and drafting them correctly can be a challenge without help. An attorney ensures that the document meets all legal requirements and is properly executed.

Avoiding Probate Issues

One of the main benefits of a living trust is avoiding probate. However, this only works if assets are properly transferred into the trust. An attorney can guide the funding process to ensure nothing is overlooked.

Avoiding Future Disputes

Ambiguous language or incomplete planning can lead to disputes among beneficiaries. An attorney helps draft instructions that reduce the risk of litigation.

Coordinating With Other Estate Documents

A living trust should work alongside other estate planning tools, such as wills and powers of attorney. An attorney ensures that all documents are aligned.

Reach Out to Klenk Law Right Away

Living trusts are powerful estate planning tools, but your documentation needs to be perfect in order for your heirs to benefit. At Klenk Law, we can handle the complexities of drafting a living will on your behalf. Reach out right away for a confidential consultation.

Frequently Asked Questions

Do I still need a will if I have a living trust?

Yes. Most individuals with a living trust also have a “pour-over will” that directs any remaining assets to be transferred into the trust upon death.

Does a living trust avoid probate?

Assets properly transferred into a living trust typically avoid probate. However, any assets not included in the trust may still go through probate.

Can I change my living trust?

If the trust is revocable, you can modify or revoke it during your lifetime. Irrevocable trusts generally cannot be changed without additional legal steps.

Is a living trust only for wealthy individuals?

No. Living trusts can benefit individuals with a wide range of assets, particularly those who want to simplify estate administration or maintain privacy.

How often should I update my trust?

It is a good idea to review your trust every few years or after major life events such as marriage, divorce, or significant financial changes.