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Practice Areas
Wills, Estates, Trusts, Corporate, Tax
LIVING TRUSTS
A living trust is a revocable (or changeable) written document where you transfer your property and assets into a trust and where, typically, you serve as the trustee until your death. One of the main advantages of a living trust is that your loved ones save probate costs, although in Pennsylvania such costs are relatively low.
Living trusts can be a good estate planning vehicle for the right person. At the same time, in my experience, living trusts are beneficial for only a very limited number of individuals.
If you are like most people, you hear television commercials and receive mailings promoting a living trust as the best method to handle your estate. However, that is not necessarily true. Indeed, the Attorney General of Pennsylvania warns, “Unfortunately, when it comes to living trusts, unscrupulous con artists are ready to play on consumers’ fears of the unknown... Be certain a living trust is the best option for your situation.” http://attorneygeneral.gov/consumers.aspx?id=304
The Allegheny County Bar Association cautions, “Today, revocable living trusts are heavily marketed as substitutes for Wills, often using exaggerated tales of costs and delays in the administration of estate under Wills (sometimes called “probate” process) as a sales tactic.
http://www.acba.org/ACBA/pdf/ACBA_ProbateTrustinPA20081.pdf.
A common misconception is that living trusts save death taxes. This is not the case, because you have the ability to revoke or change the living trust until you die. Since you maintain this control over the living trust while you are alive, state and federal death taxes are due after your passing. http://www.acba.org/ACBA/pdf/ACBA_ProbateTrustinPA20081.pdf.
Attorney Wise welcomes the opportunity to explore whether a living trust is an effective estate planning tool for you.