As a corporate executive or entrepreneur, you know the value of preserving and managing your wealth for you and your family’s well-being. You likely want to provide for them, avoid overpaying taxes, and leave something to your favorite charities to give back. Setting up various trusts can accomplish all this and more.
When you consult with a San Antonio trusts lawyer at Begum Peláez-Prada PLLC, you get award-winning, knowledgeable attorneys and a support team that is proud to offer you the attention you deserve. Our seasoned estate planning attorneys strive to exceed what you expect from your legal advocates and help you achieve the best possible outcome.
There are two types of trusts: revocable or irrevocable. Revocable trusts can be withdrawn, and assets and beneficiaries can be changed at the grantor’s discretion until death. The grantor or an independent person can act as a trustee.
Irrevocable trusts cannot be altered once established because the assets deposited in the trust are owned by the trust itself and managed by an independent trustee according to the grantor’s instructions. These trusts have tax advantages since the grantor’s assets are separated from the taxable estate, shielding them from creditors.
As a San Antonio attorney could explain in detail, trusts circumvent probate and are private—as opposed to wills, which become public record.
Irrevocable life insurance trusts (ILIT) are designed for purchasing life insurance policies on grantors, who establish and fund the ILIT—although an independent trustee manages it and pays the annual insurance premiums. The trustee ensures the life insurance policy premium is paid regularly until the grantor dies. Upon the grantor’s death, the beneficiaries receive the trust’s assets. Beneficiaries reap the proceeds that can, among other uses, further the grantor’s family business interests if they are underfunded.
Revocable life insurance trusts (RLIT) are advantageous when a small business owner is on tenuous financial ground while growing. They hold the grantor’s life insurance policies so that when a grantor dies, the proceeds can pay expenses and continue to fund a young family business that may lack liquidity. For advice about trusts applicable to your situation, contact our skilled San Antonio lawyer, Sasha Begum, at Begum Peláez-Prada PLLC. She has more than two decades of experience assisting clients with estate planning and business needs.
Testamentary trusts are established in your will for specific reasons. For example, if your children are still minors when you die, a testamentary trust can benefit them through payouts before they reach adulthood. The trust only becomes valid after a grantor dies and the conditions set are met, in this case, when minor children are orphaned.
Qualified Income Trusts (QITs)—also known as Miller Trusts—help seniors qualify for Medicaid long-term care when their income and assets exceed the allowable amount. QITs are irrevocable and ensure that assets go to loved ones rather than being reclaimed by Medicaid.
Trusts can be beneficial to your estate planning, and our team could identify and provide the ones best for you. At Begum Peláez-Prada PLLC you will find a welcoming environment with professionals ready to assist you. Protect what you have worked a lifetime to amass by contacting a San Antonio trusts lawyer today.
