Understanding Common Types of Trusts

Since 1990, Ruggiero Law Offices has helped families like yours protect what matters most. Led by James "Jim" Ruggiero, Jr., Esq., and supported by a skilled team of attorneys and legal professionals, our firm brings practical, common-sense solutions to estate planning, trust administration, and elder law challenges. When you put your confidence in us to plan your estate, one strategy we recommend is for you to understand various trusts. 

Establishing a trust protects assets for your descendants and helps them minimize the tax expense associated with an inheritance. Review the common types of trusts below to explore how they may fit into your estate plan. 

Living Trusts

A living trust is a trust you create and fund during your lifetime. They offer the benefit of probate exemption, so inheritors receive the trust assets right away. You can also maintain your privacy by placing sensitive assets in a living trust. 

You can establish either an irrevocable or revocable living trust. Here are the differences between them:

  • With an irrevocable trust, you can avoid estate taxes. However, you cannot make changes to this type of trust after transferring assets to the ownership of the trust.
  • Revocable trusts don't share the tax benefits of an irrevocable trust, but they allow you to make changes at any time for any reason. 

Testamentary Trusts

You may want to establish a testamentary trust for the purposes of:

  • Providing for a spouse or a child with special needs.
  • Passing down assets to children from more than one marriage.
  • Charitable giving.

You can create this type of trust in your will to be automatically funded after you die. 

Let Ruggiero Law Offices Help Secure Your Future

Within these two main categories of trust, you can choose from countless arrangements depending on your specific estate planning situation. For example, an irrevocable life insurance trust provides tax shelter for individuals who have large estates. Exploring these options with a professional at our firm can guide the division of your assets in alignment with your wishes. 

Schedule a Consultation With an Experienced Paoli and Center Valley Trust Administration or Probate Attorney 

Carrying out your duties as a trustee or executor of a loved one’s estate can be overwhelming, but it doesn’t have to be. Don’t navigate trust administration or probate alone. Ruggiero Law Offices’ trusted attorneys provide the guidance you need to handle these responsibilities correctly while shielding yourself from liability.

Take the first step toward successfully executing your trust administration and probate duties. Visit our Paoli or Center Valley office today to discover how we can help you fulfill your duties with confidence. We serve Pennsylvania clients throughout the Delaware Valley and Lehigh Valley areas. Contact us today to schedule your appointment.

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