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