IN Brentwood-Baldwin-Whitehall Spring 2020 | Page 3

INDUSTRY INSIGHT
LEGAL INSIGHT
SPONSORED CONTENT
C O V E L L I L AW O F F I C E S , P. C .
Can You Trust Your Living Trust?
W
ith so many fi nancial planning companies
off ering “asset protection strategies” for
every conceivable situation, it is nearly
impossible to be an informed consumer
without the help of an expert, especially when it
comes to living trusts.
“Some people were enticed with living trusts
through some really broad marketing ploys,” said Joe
Covelli of Covelli Law Offi ces who is also a member
of the Estate Planning Council of Pittsburgh. “Many of
these ‘mass marketed’ trust instruments really have
limited value when it comes to most estate plans,
because the trust instrument was never tailored to
the individual’s specifi c situation. A Living Trust is not
appropriate for everyone, and your trust may not be
protecting your assets in the way that you had hoped.”
Creating any type of trust involves transferring
assets into the name of the trust. Whether fi nancial
assets like bank accounts, stocks, bonds and insurance,
or real estate holdings and vehicles, the trust becomes
the new “owner” of those assets. However, if your
trust is not structured properly, placing those assets
in the name of the trust may be futile—causing you
additional paperwork, time, and expense with very
little benefi t.
“A living trust will not protect you from a claim
by a nursing home or reduce your inheritance taxes
in any great respect,” Covelli explained. “And, if your
estate planning also involves a Power of Attorney,
you need specifi c language in your Power of Attorney
document relative to the trust; otherwise, your agent
may not be able to fully manage your assets in the
event that you become incapacitated. Most common
issues with Living Trusts in Estate Plans involve a lack
of coordination between estate planning documents.
For example, your Last Will and Testament may have
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oice Awar
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orney
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provisions that confl ict with the trust. Your trust may
never have been updated, so your provisions may
likewise be outdated.”
He added that, fortunately, trusts may be modifi ed
in many cases and that a large portion of his law fi rm’s
trust work for clients involves revoking established
trusts and creating more benefi cial and cost-eff ective
estate plans.
“The problem is, people hear the word ‘trust’ and
they think that every trust is the same; that every
trust is benefi cial. However, that is not necessarily
the case in every situation. Some types of trusts have
more advantages than others,” Covelli said. “A trust
that does not accomplish your objectives needs to
be revoked and its assets transferred. Many assets
can be administered less expensively outside of a
trust. Then, specifi c assets that might actually benefi t
from a trust can be placed in a carefully crafted asset
protection or real estate trust. An experienced estate
planning attorney can advise each specifi c individual
on the best approaches to protect the person, to lower
inheritance taxes, or to more easily transfer assets at
the time of death.”
Covelli Law Offi ces, once again a Tribune-Review
Gold Award winner for Best Attorney as voted by
readers, is a local law fi rm equipped to help you
understand all legal issues relating to your estate
planning. At Covelli Law Offi ces, everyone receives a
free 30-minute consultation where a lawyer will advise
you as to what role he or she can play in your situation
to help the most, and give you an up-front cost for
services.
For more information on Covelli Law Offi ces, go to
Covellilaw.com online, or call 412.653.5000. Covelli
Law is located at 357 Regis Avenue (across from the
Pleasant Hills-West Miffl in Post Offi ce).
Joe Covelli has over 38 years of legal
experience and is a “5 Star Professional
Award” recipient. He is a member of the
National Academy of Elder Law Attorneys,
and he heads a team of attorneys with
expertise in several areas of the law. For
more information, call 412.653.5000, or visit
www.covellilaw.com.
FREE Consultation | Call Today! 412.653.5000