INDUSTRY INSIGHT
LIVING TRUSTS
SPONSORED CONTENT
“ Avoid Probate!”“ CREATE A REVOCABLE LIVING TRUST!”
For at least 20 years, this has been the clarion call of many financial advisors and attorneys, some of whom have good intentions, and some not so much. Others are outright scammers.
Before taking such a major financial and legal step as to re-title all of your assets into such a trust for the purpose of avoiding probate, be sure to have your personal situation evaluated by an expert you trust, or who comes recommended by someone you trust.
There are some basic aspects of estates and trusts that you should understand in this context.
First, probate procedures are a matter of state law, and it is my understanding that the process is indeed a nightmare in some states, making the goal of avoiding probate understandable. But in Pennsylvania the process is not horrific or fraught with delay and unreasonable expense. In most cases, it can be started as soon as the death certificate becomes available. There are no mandatory delays.
Second, there will be no inheritance tax savings by placing assets in a living trust.
Third, the expense to establish the trust and transfer all of your assets could offset the relatively small savings in probate costs. And if you fail to transfer everything to the trust, you might wind up with the worst of both worlds: someone administering / terminating the trust and administering a probate estate.
Fourth, legal fees will be incurred to administer / terminate a trust as well as to administer an estate.
Finally, there are methods of avoiding probate as to particular assets that are far less complicated and expensive.
These matters are too important to be decided emotionally and without a full consideration of your individual situation.
This Industry Insight was written by Betty Dillon.
Dillon received her law degree from the University of Pittsburgh. She is a member of the Pennsylvania Bar Association; also of the Allegheny County Bar Association, where she is a member of the Family Law Section, the Probate and Trust Section and the Elder Law Committee.
For further information, call 412.835.0933 or go to www. bettydillonlaw. com online.
Bethel Park | Spring 2017 | icmags. com 13