Experienced Legal Advice On The Creation Of Trusts
Legal trusts are often a key component of an estate plan. Simply put, a trust is its own legal entity. When you transfer assets into a trust, they become the property of the trust and are to be used in the best interest of the beneficiary of the trust. This can be advantageous in many situations. An experienced trust lawyer like R. Scott Buhrer can evaluate your situation and goals and recommend whether a trust is appropriate in your case.
Mr. Buhrer provides individualized, client-centered counsel for people creating estate plans, along with representation during the succession process in Louisiana. Along with a will, a power of attorney, and a living will, a trust or trusts can help most people protect their family and beneficiaries from an unduly burdensome succession. Trusts can also be useful to meet specific goals.
In addition to more than 35 years of experience as an estate planning and trust lawyer, Mr. Buhrer holds a Master of Business Administration (MBA) degree from Tulane University. This gives him a strong background in financial matters.
A Few Examples Of How A Trust Could Help You
Trusts allow people to control their assets, or to protect the assets for their loved ones. Trusts are especially useful:
- To protect your assets: Certain trusts can make it possible for one spouse to qualify for Medicaid while preserving assets for the other spouse’s use. They may also protect the trust assets from creditors and minimize taxation.
- In a divorce: When they pass away, most divorced parents will have their assets go to their children. If the child is still a minor, an administrator will have control of these funds. Oftentimes, this administrator ends up being the person’s former spouse because he or she now has sole custody of the children. By setting up a trust, this situation can be avoided and someone other than the ex-spouse can be named to control the child’s inherited assets.
- To prevent children from overspending: A trust can keep a child from wasting a large sum of money or other assets he or she inherits or receives from another source. Limits can be set, including preventing a child from accessing all or a part of the assets inherited until he or she turns a suitable age, normally well beyond that of the majority.
- To support an adult with a disability: A special needs trust can provide financial support for a person who is unable to work due to a disability without affecting their eligibility for government benefits.
- To limit the size of your estate so the succession (probate) process is simpler: In Louisiana, estates valued at less than $125,000.00 go through a simpler succession process without court involvement. Because much of your property would be owned by the trust, the size of your estate could be below that threshold.
There are many different types of trusts a lawyer can help you create. With over 35 years of experience as an attorney, Mr. Buhrer can help you identify the type of trust that meets your goals. He will ask questions, listen carefully to the answers and provide the most cost-effective trust solution available to you.
Frequently Asked Questions About Trusts
As an estate planning and trust lawyer, Mr. Buhrer answers many questions from clients about trusts. Here are some common ones and their answers.
Is there an advantage to using a trust instead of a will?
There can be many advantages to creating a trust to hold your assets rather than passing them through a will. Whether a trust will be effective and which kind of trust to create depends on your specific goals. For example, beneficiaries of a trust do not have to go through a formal succession/probate process to receive their inheritance. Also, since the trust would own the assets instead of you, you may be able to avoid these assets being calculated against your eligibility for government benefits like Social Security Disability or Medicaid.
If I have a trust, do I also need a will?
Generally, yes. Many people transfer their major assets into the trust, but there are usually some leftover that remain outside the trust. Also, a will allows you to designate who should receive what among your personal property. Both a will and trust can be part of a comprehensive estate plan.
What is the difference between a revocable and irrevocable trust?
An irrevocable trust is set up so that the person creating the trust cannot later undo it. A revocable (or “living”) trust is one that can be changed or revoked later, if desired. These have different legal effects. In general, a revocable trust offers slightly less protection against creditors and taxes because the person who created it retains some control.
Why do I need a trust if I can just title all assets in joint ownership to avoid probate?
If your only goal is to avoid a court-supervised succession (probate) process, joint ownership can effectively pass jointly-titled assets to your spouse. However, many people would prefer to leave some assets to other beneficiaries or pursue another goal that a trust can help with. Also, in most cases, assets that are not jointly titled will be left behind. These assets would still go through a succession process.
Can a trust override a will?
In a sense, yes. Once assets are placed in a trust, they generally belong to the trust, not the person who created it. Because these assets no longer belong to the individual, the person can no longer transfer them by a will. An estate planning and trust lawyer can help you understand how your trust interacts with your will.
Contact A New Orleans Trust Lawyer Today
To arrange an initial consultation, contact the Buhrer Law Firm online or by calling 504-541-6997 or 800-636-0784. The law firm is conveniently located near Lakeside Mall and has plenty of street-level parking available.
