Burlington living trust attorneys provide help to those who are considering the creation of a trust. Trusts are powerful legal tools that can serve many different purposes. However, there are different kinds of trusts and there are substantial differences in the protections that each type of trust actually provides to you. You need to select the right kind of trust to get the expected benefits from it, and you need to make sure you follow all formalities for the creation of a legally valid trust document. Unsworth LaPlante, PLLC can help.
Our legal team can offer comprehensive assistance with all aspects of trust creation so you can best use trusts to protect your assets and your loved ones. Give us a call to find out about the assistance that an attorney can provide in choosing a trust type, funding a trust, and creating a trust document that is valid under Vermont law. Our legal team can also help to correct any misconceptions you may have about trusts so you don’t make mistakes with trust creation that end up costing you.
Common Myths about Living Trusts
There are many misconceptions that people have about living trusts but some of the most common include the following:
- Myth: A living trust will help you to avoid estate tax. Although a living trust does allow assets held within the trust to transfer outside of the probate process, the trust assets are typically still part of your taxable estate and will thus be factored in when determining whether taxes are owed and how much money is due.
- Myth: A living trust will protect assets from creditors. In most cases, since you retain control and can still access the trust assets, a living trust provides limited or no protection if creditors make claims against you.
- Myth: Transferring wealth to a living trust can allow you to qualify for Medicaid without spending down assets. Again, since assets are still accessible, they are generally still counted as resources for purposes of Medicaid eligibility. This means that creating a living trust will not keep you from having to spend down your wealth before Medicaid will pay for you to get care in a nursing home.
Unsworth LaPlante, PLLC can help you to understand exactly what a living trust can do, and cannot do, so talk with an attorney before creating a trust so you don’t make the wrong choice about trust creation as a result of myths and misconceptions.
Understanding What Living Trusts Actually Do
Although living trusts don’t protect assets from estate tax and don’t necessarily keep assets safe in case of creditor claims or a need for Medicaid services, this type of trust does serve important purposes- including providing protection for assets in case of incapacity and ensuring that loved ones can inherit assets quickly after your death.
When you create a living trust, the backup trustee you choose will be able to immediately take control over managing trust assets, which is a significant benefit if you have investments or other types of wealth that requires hands-on management. The assets held within a living trust can also transfer through the probate process, which means they can be transferred much more quickly to new owners while ensuring your privacy is maintained because there is no need for a public court process to transfer the assets.
If you are looking for other types of protections that a living trust cannot provide- like avoiding estate tax, you should talk with an attorney about alternatives. But if you are hoping for flexibility, protection in case of incapacity, and a timely transfer of assets after death, work with Unsworth LaPlante, PLLC to create a living trust that will be valid under Vermont law.
Getting Help from Burlington Living Trust Attorneys
Burlington living trust attorneys at Unsworth LaPlante, PLLC can provide invaluable help throughout the trust creation process. Our legal team will work with you at every step of the way to ensure that you make a living trust that is valid and enforceable, and can also provide guidance on other alternative types of trusts if a living trust will not provide the benefits that you are looking for.
To learn more about how trusts can be used as a part of your comprehensive estate plan, download our free estate planning worksheet. You can also give us a call at (802) 879-7133 or contact us online to get personalized advice, so reach out today to talk with a compassionate and knowledgeable member of our legal team.