At first, the estate planning process in Missouri can seem confusing and even daunting. As you begin to explore the various estate planning tools and documents that are available to you, it’s natural to feel a bit overwhelmed by all of these options.. Our goal is for you to set up a trust (or trusts) that are best suited for your specific needs and goals so that you can face the future with greater ease and optimism.
St. Louis Trusts Lawyer
Dedicated Estate Planning Law Firm Proudly Helping St. Louis Families Establish Trusts
Understanding Trusts as Estate Planning Tools in Missouri
Essentially, trusts are estate planning tools that specify how your assets should be handled and distributed in a procedural manner without the intervention of the probate court. When an individual passes away in Missouri, their estate usually passes through a formal legal process called probate. Probate follows several formal steps, such as validating the decedent’s will (if it exists), identifying and inventorying the estate’s assets, paying any outstanding debts and taxes owed by the estate, and distributing the remaining assets among the beneficiaries (either according to the terms in the will or according to the Missouri’s intestate succession laws). However, estates with jointly owned property or involving assets with beneficiary designations may be able to bypass the probate process. Estates involving trusts can also circumvent the probate process, which can be lengthy and costly for the decedent’s grieving loved ones. As you plan for your legacy, it’s worth exploring how setting up a trust can help you reduce the need for probate and ensure a smoother transfer of assets when the time comes.
How Do Trusts Work in Missouri?
When you set up a trust as part of your overall estate planning strategy, you place your assets into the trust and designate a trustee who will manage the trust’s assets according to the terms you establish. The trustee has a fiduciary duty to follow the instructions articulated in the trust document, so you can rest assured that your assets will be well-managed and sufficiently protected. However, it’s important to recognize that there are different types of trusts to accommodate a broad range of needs and goals. When you enlist the assistance of an experienced St. Louis trust formation attorney, you can explore the potential advantages and limitations of each type of trust to identify the option that best suits your specific needs and goals.
Exploring Your Trust Options in the Greater St. Louis Area
At Wallach & Associates, P.C., we recognize that the most effective estate plans are those that have been tailored to accommodate your unique circumstances, concerns, and priorities. Depending on your estate planning goals, we may explore the potential benefits of establishing the following types of trusts.
Living Trusts
Living trusts are established and funded during your lifetime. Revocable living trusts are extremely flexible. For example, you can be the initial trustee and therefore continue to manage the trust assets in a manner not so different from when you owned them directly. In some circumstances, however, you may not want to be the initial trustee, and this is something we can address with you when you set it up. In either case, a revocable living trust gives you the flexibility you may need to change provisions such as who the beneficiaries are, and even to revoke or terminate the trust at any time. Irrevocable living trusts cannot be altered or terminated, but they generally allow the assets held within the trust to be excluded from your taxable estate (which often leads to considerable tax savings).
Testamentary Trusts
While living trusts are created during an individual’s lifetime, a testamentary trust is established in the person’s will. When this individual passes away, the testamentary trust will then be created and take effect. For instance, someone may include a testamentary trust in their will in order to provide for the welfare of their children in the event of their unexpected passing. Learn more about testamentary trusts by contacting one of our skilled and dedicated estate planning attorneys today.
Special Needs Trusts, Charitable Trusts, and Other Types of Trusts
Other trusts can be used to address more specialized needs, such as providing financial security for a family member who relies on government assistance without jeopardizing their eligibility for these much-needed programs. Or, you may want to explore the prospect of creating a charitable trust that allows you to allocate some of your assets to support a cause that’s close to your heart.
