Each legal document in your estate plan serves a very specific purpose and is intended to protect your interests. For example, a will designates your beneficiaries and states how your assets and property should be distributed upon your passing. However, a will can’t protect your estate or your loved ones from probate court. Probate is a costly legal process that can last 6-9 months. During this time, the court will appraise your will and use your remaining assets to pay off any residual debts and taxes. Consequently, your beneficiaries won’t be able to access their inheritances and may have to pay expensive out-of-pocket court fees.
The best way to keep your assets out of probate court is to create an effective estate plan with thorough trust documents. At DiPietro Law Group, PLLC, our estate planning attorneys in Washington, D.C. can review your assets and help you determine which trust options best suit your personal circumstances.
Call our Washington, D.C. estate planning lawyers at (202) 902-9587 to explore your legal options.
Which Trust is Right for Me?
When you place your assets or property into a trust, you are effectively relinquishing your ownership to protect your interests and beneficiaries from the probate process.
A trust is beneficial for the following reasons:
- You family can mostly bypass the probate process
- Your assets can be distributed per your wishes
- Your assets can be distributed over a period of time
- Estate, federal, and state taxes won’t diminish your assets
- You can continue building wealth by investing your trust assets
There are several different types of trusts that you can choose from depending on your financial needs and preferences. In fact, some people choose to have more than one trust option included in their estate plan.
At DiPietro Law Group, PLLC, we can help you create the following trusts:
- Revocable Living Trusts: When you create a revocable living trust, you remain the controlling trustee and can alter or revoke it at any time. Upon your death, the trust, and the assets and property it encompasses, will be entrusted to your chosen beneficiary. It’s important to note that a revocable trust is subject to estate taxes.
- Irrevocable Living Trusts: By transferring your assets and properties into an irrevocable trust, you relinquish ownership to protect them from probate, taxes, and lawsuits. However, irrevocable trusts aren’t very popular because they can’t be modified or revoked once they have been drafted and established. For this reason, people only utilize this trust option if they have significant assets or are trying to apply for certain benefits.
- Charitable Remainder Trusts: This is an irrevocable trust that may provide you with tax benefits and potential income streams while simultaneously benefiting your favorite charity or organization.
- Special Needs Trusts: Special needs trusts, or supplemental needs trusts, provide financial aid to disabled individuals. Anyone who utilizes this option can still apply for other government benefits.
Schedule a Consultation Today
At DiPietro Law Group, PLLC, our legal team has over 40 years of collective experience and can help you establish trusts that protect your assets from the probate process. No matter how unique or complex your financial situation is, we can guide you in determining the best options for your personal estate plan.
Contact DiPietro Law Group, PLLC at (202) 902-9587 to schedule a consultation today.