Media PA Trust Fund Lawyer

Media PA Create a Trust Fund Attorney

Creating a trust or a trust fund allows you to designate a trustee to manage the assets put in a trust.  A trust may or may not be a beneficial tool for your estate.  It is important to have a personal assessment of the federal tax consequences of your estate before creating an estate plan.

At the law firm of Barnard, Mezzanotte, Pinnie & Seelaus located in Media, Pennsylvania, we offer comprehensive trust guidance. Our trust attorneys are skilled at handling your estate planning concerns and implementing effective trusts to address your concerns.  Contact us to schedule a free consultation.

The purpose of trusts as estate planning tools

When we help you create a trust, we make sure that the passage of funds is done correctly and efficiently.  We understand that common reasons for creating trusts include the desire to transfer assets to younger adults with directives from their parents but that is not the only reason for a trust.

In other occasions, trusts are used as a very efficient mechanism to pass wealth and minimize tax consequences.  Trusts help to pass assets and property on to children or other relatives in a staged fashion so that there is asset preservation.  During the process of creating a trust, it is especially important to speak to attorneys who can help you take advantage of tax shelters and minimize tax liability.

Tax saving trusts in Pennsylvania

If your goal in establishing a trust is to minimize your tax liability, there are two common trusts that may offer you the protection you desire:

• Credit shelter trust:  The credit shelter trust, also called a bypass trust, allows you and your spouse access to your money and assets while you are alive.  During your life, your spouse has broad discretion to use the money in the trust. In the event of your death, your assets are transferred free and clear of tax consequences to your heirs up to a certain monetary limit, currently $5 Million in assets.  Only assets that are in one person's name are eligible for the credit shelter trust so it is important to consider leaving assets in one name because otherwise assets and property go directly to your spouse upon your death and the transfer does not receive the important tax benefits provided by the credit shelter trust.

• Marital trust:  A marital trust is often established to allow all the money that does not go into credit shelter trust.  Marital trusts provide other tax shelters and in some circumstances are able to protect you from significant federal tax liability.

Implications from the Federal Estate Tax lapse

The complicated area of federal estate taxes is changing quickly and is currently in a state of flux.  The law in effect in 2012 allows you to pass on up to $5 Million to a person other than your spouse without federal estate taxes.  After that, everything you pass on will be taxed at a rate as high as 35%.

In 2013, this law is expected to change again, so close attention should be given to this particular area in your estate planning.

Contact Barnard, Mezzanotte, Pinnie & Seelaus for a free consultation with an experienced Delaware County, Pennsylvania lawyer.  Our firm has offered a tradition of service to personal and business clients since 1980.

Off-site, evening, and weekend appointments available • Media, PA office