Will a Revocable Living Trust save taxes?
No, a trust does not avoid Pennsylvania Inheritance Tax. Although there are vehicles in which you can lessen your state inheritance tax. Please contact us for details.
Yes, it will help with Federal Estate Taxes for the Unified Tax Credit given to both husband and wife for large estates over $11 million.
Will a Trust keep my estate from being spent down for nursing homes?
No, by itself, a Revocable Living Trust would not protect your property from Medicaid. However, it’s not how much you have, it’s where it’s being held. With a few simple Estate Planning changes, we can protect a portion of your Assets from Medicaid Spend Down. While both husband and wife are living, there is no recovery or lien to the property unless both are in a nursing home.
What happens if Senior Estate Associates LLC goes out of business?
Similar to a Will, if the attorney would predecease you or retire, you still have a Will. Consequently, the same is true for a Trust. But being a LLC and having Associates in their 30’s and 40’s, SEA has a long future of service. The Trust is still valid in all 50 States.
Does everyone need a Revocable Living Trust?
No, if you don’t own property or have assets under $75,000, you don’t need a Revocable Living Trust. You still need Asset and Health Care Power of Attorneys and a Living Will. For persons who don’t own property but have other assets i.e. savings, C.D.’s, stocks, bonds, etc., there are vehicles to protect these monies.
Can I transfer assets to my children when I am living?
Yes you can, BUT there are numerous reasons not to, and here are a few:
|• You no longer own the property and it can be sold at anytime
• If your child predeceases you, there will be Pennsylvania Inheritance Tax that will be owed
• Your assets will be subject to your children’s creditors, including lawsuits and judgments against them and there could be a lien placed on your home
• You lose the Stepped-Up Valuation. “The concept of stepped-up valuation is almost totally unknown to most people, but it is one of the most important concepts that should be understood by all people who wish to preserve as much of their estates as possible for their heirs. Stepped-up valuation is one of the key reasons why a well-drawn Living Trust can minimize and, in most cases, eliminate capital gains taxes on the eventual sale of highly appreciated assets (such as the family home).” Source: The Living Trust, by Henry W. Abts III.
• Everything not in joint tenancy must go through probate.
If you have any questions that are not answered here, please contact our office and we will be happy to have one of our attorneys help you. Contact Us