Trust Attorney in
Brookfield, Wisconsin
A trust is a legal entity that owns assets for the benefit of another.
The grantor is the person who gave money to the trust to set up.
Why Should You Hire A Trust Attorney?
Answering your legal questions about revocable living trusts.
There are many different types of trusts, each designed to serve a specific purpose.
Many individuals and families choose to implement a revocable living trust to allow their beneficiaries to inherit assets without the costs and delays associated with the probate process.
However, revocable trusts can be thoughtfully designed to provide many additional benefits, such as: protection of the assets in the event a surviving spouse remarries, language to allow the trustee to engage in asset protection strategies in the event of a long-term care need, creditor and divorce protection for beneficiaries’ inheritance, custom age provisions for when a beneficiary gains control over his or her share of the trust assets, special needs provisions to safeguard a disabled beneficiaries share from making him or her ineligible for disability benefits, provisions to minimize estate, income, and gift taxes, and more.
If you would like to meet with an attorney to discuss implementing a trust or if you would like to have your trust reviewed by an attorney, contact us today to schedule your complimentary consultation.
Charitable Lead Trusts
- Acts as an income source to a charity for years, and after that time, the remainder is paid to the family.
- Can reduce the taxes owed on certain funds
Other Charitable Strategies Include
- Private Family Foundations
- Donor-Advised Funds
- Local Community Foundation for special funds
Tax Planning: Trust Planning to Minimize Taxes
Irrevocable trusts are used mainly for two purposes: tax avoidance or asset protection.
Tax Planning Trusts
Many people implement irrevocable trusts to reduce income and estate taxes. The following is a list of the types of trusts commonly used to reduce taxes:
- Grantor Retained Trusts / (GRAT / GRUT)
- Charitable Remainder Trusts / (CRAT / CRUT)
- Charitable Lead Trusts / (CLAT / CLUT)
- Qualified Personal Residence Trust (QPRT)
- Irrevocable Life Insurance Trust (ILIT)
- Qualified Domestic Trust (QDOT)
- Intentional Grantor Trust (IGT)
Each of these trusts provides different tax-saving opportunities.
Asset Protection Trusts
Asset protection trusts can be less restrictive than tax planning trusts. Typically, with asset protection trusts, the primary goal of the grantor (the person setting up and funding the trust) is to protect the assets from liabilities during his or her lifetime, such as: lawsuits, nursing homes, hospitals, and other creditors.
Asset protection trusts can allow the grantor to retain the right to change the beneficiary and the timing, manner, and/or method of the distribution of trust assets.
Asset protection trusts must be carefully drafted to protect assets from creditors and to allow for certain tax advantages. Asset protection trusts are one of many different ways assets can be protected in Wisconsin. If you or a loved one is interested in determining how to protect assets, contact us to set up a complimentary consultation with one of our experienced attorneys.