Charleston Trust Attorney
Trusts are not just for retirees or the wealthy. Trusts are for every stage of life and can fit any budget. It’s the smart, modern way to protect and preserve your legacy. At a minimum, every adult needs an estate plan that includes a will, a durable power of attorney, and an advance medical directive. We highly recommend adding a trust which would hold all of those essential estate planning documents whilst avoiding probate and keeping your estate completely intact. Without a trust, your family can be exposed to a public probate proceeding, costing you easily 10% of your estate. Learn about the types of trusts available and contact one of our estate planning attorneys to help you get started today. No matter where you are in life, it’s always the right time to protect yourself and your loved ones.
Types of Trusts
Revocable Living Trust
One of our most popular choices, this estate planning tool allows you to manage and make changes at any time. One benefit of a living trust is that it avoids probate, since you no longer “own” the assets and the trust does. Not only will this save time and money, it will also maintain the privacy of the financial arrangements. You will appoint a trustee to administer the trust in the event of your death or incapacity. In addition, a living trust can help minimize estate consequences, a particular concern for high-net-worth individuals.
This estate planning tool can help you achieve objectives such as planning for long-term care, providing for a loved one with special needs, and protecting your assets from creditors’ claims. While an irrevocable trust also avoids probate, it cannot be modified.
Stand Alone Retirement Trust in Charleston
In general, you can access money from an inherited IRA in the following ways:
- Withdraw the whole amount at once as soon as possible
- Withdraw everything within 5 years after your benefactor’s death
- Withdraw the money over your expected lifespan
Since the more slowly you withdraw the money, the less tax you have to pay annually, and the more time you have for tax-deferred growth, most people are advised to use the third method.
Since almost all individuals who have pets consider them a part their families, pets should not be forgotten when working with an estate planning attorney.
IRA trusts are used to protect the funds in the IRA when the individual with the retirement account passes away. It is important to note that an IRA cannot be put in a trust during one’s lifetime. The IRA trust is created to protect the beneficiary at the time of inheritance.
An inheritor’s trust, often called an irrevocable trust, is a trust which cannot be amended or revoked. Once you place assets in an inheritor’s/irrevocable trust, they are no longer yours. You are essentially giving them away for good.
Each person is allowed to give an unlimited number of people $15,000 ($30,000 for a married couple) annually, without paying a tax on that gift. This is referred to as a gift tax exclusion under Internal Revenue Code Section 2503(b)
Community Property Trusts
A Community Property Trust is a special kind of joint revocable trust designed for couples with low-basis assets, that is, assets that have not increased significantly in value since their purchase.
A gun trust is a type of revocable living trust that allows you to purchase, receive, transfer and hold guns that are subject to certain federal laws and regulations. As the trustee and beneficiary of the trust, you can retain ownership of your gun collection during your lifetime. The trust designates a successor trustee and beneficiaries of the trust, and also provides instructions for the transfer of your weapons after your death.
Spousal Lifetime Access Trust
A Spousal Lifetime Access Trust (or “SLAT”) is an asset preservation tool that can work well in many estate planning situations. A SLAT can minimize the impact of transfer taxes and maximize the opportunity for long term growth. It may also preserve financial access for a surviving spouse or other beneficiaries.
Beneficiary Defective Inheritor’s Trusts
Inheritor’s trusts allow you to protect your income from creditors and exclude it from your estate for federal estate tax purposes. While South Carolina’s laws do not allow you to protect your own assets once you have received an inheritance, if you are expecting an inheritance from someone who is not able or willing to put the inheritance in an asset-protected trust, you can protect these assets yourself by creating an inheritor’s trust.