Trusts Attorneys

You have worked hard to create your life, and you deserve to share your wealth with your family. A trust will allow a trustee to manage your assets on behalf of beneficiaries. Creating a trust can give your loved one’s financial security to pursue their own ambitions.

At Wetzel Gagliardi Fetter Lavin LLC, we will work with you to create a complete estate plan that meets your financial needs. Our trust attorneys have counseled individuals on various trusts that meet our clients’ financial goals, whether it be tax planning, providing protection from creditors, or avoiding probate.

Creating a Trust

For high assets estates, we often recommend that individuals consider creating a trust. By retitling assets into the trust, (known as “funding the trust,”) those assets are no longer part of your taxable estate.

Trusts fall into two categories: revocable and irrevocable. In a revocable trust, assets can be removed or added, the terms of the trust can be altered, trustees can be changed, and the trust itself can be terminated. This varies entirely from an irrevocable trust, in which the terms and conditions cannot be changed once the trust is created. However, all revocable trusts become irrevocable once a person dies.

Types of Trusts

Below, we discuss three types of trusts and the purposes of establishing each:

Revocable Living Trust

A type of revocable trust, a living trust allows assets to avoid the court-supervised probate process. Additionally, it allows an individual to specify how assets should be distributed upon his or her death. In most types of living trusts, you can transfer property to the trust without giving up control of the assets. Most living trusts are revocable, permitting the grantor to modify trustee appointments and the terms of the trust during the individual’s lifetime. However, this type of trust does not avoid inheritance taxes.

Testamentary Trust

Some people choose to build a trust into their will, known as a testamentary trust. A testamentary trust can allow you to bequeath assets to loved ones once they reach a certain age. Also, life insurance proceeds can be paid to this type of trust after you pass. Although a testamentary trust affords asset protection, it does not avoid probate.

Irrevocable Life Insurance Trust (ILIT)

An irrevocable life insurance trust, or ILIT, owns a life insurance policy during the insured’s lifetime. An ILIT takes a life insurance policy out of your name, making the ILIT the primary beneficiary of the policy. Since the value of your life insurance policy is no longer part of your taxable estate, this type of trust is generally used to avoid estates if the value of the policy places you over the federal tax limit.

The trust is usually funded by annual gifts, which can be up to the gift tax exclusion ($18,000 as of 2024). Once the grantor passes away, the insurance payout will be distributed to beneficiaries of the trust.

Qualified Terminable Interest Property (QTIP) Trust

A Qualified Terminable Interest Property (QTIP) trust is a type of irrevocable trust that is established for tax planning purposes. A QTIP benefits a surviving spouse, allowing income to be paid to that spouse until his or her death. The income paid from the trust qualifies for the marital deduction, only being subject to estate tax withholding once the second spouse passes away.

Offering You Financial Security

Planning for your family’s well-being after you are gone can be a tedious and confusing process. You want to do everything for your loved ones, but with so many state and federal tax laws, it is unlikely that you will make the best choices without guidance from an experienced trust attorney.

Our legal team is committed to supporting your legacy. We take the time to understand your entire financial situation, from current pensions, 401 (K)s, term- or life-insurance policies, and other sources of revenue. Having all the information allows us to advise you appropriately, helping you make the best decisions regarding handling your estate. If you have any questions regarding trust planning, do not hesitate to contact our firm.

Contact a Trust Attorney Today

If you have any questions regarding trust or estate planning, our legal team is ready to help. Our legal team’s diverse backgrounds and decades of experience allow us to handle all complex legal matters. If you are ready to learn how we can be of assistance, contact us by phone or online to schedule your consultation.