When you make the important decision to start planning your estate, it is essential to work with an experienced estate planning attorney. If you live in Fairfax, Virginia, the estate planning attorneys at The Law Office of Afsana Chowdhury, PLC, can help you create an estate plan that suits your needs. Trusts are critical pieces of any estate plan, and our estate planning lawyers can help create cost-effective trusts that protect your legacy.
Whether you know what you have in mind for estate planning or want to know how the process works, our experienced Fairfax trust lawyers can answer your questions. We will explain the different types of trusts available in a Virginia estate plan and which might be right for you and your family. There is no one-size-fits-all approach to trusts in estate planning. We will listen to your concerns and prepare trusts that save your family time and money in the future. Call (703) 271-6519 to schedule a free consultation.
How Can an Estate Planning Attorney Help Make Trusts Part of Your Estate Plan?
These days, it is not hard to find online forms or programs that claim to meet your estate planning needs. These are not part of a wise estate planning strategy, however. Mistakes in wills and trusts can have long-term consequences for your heirs. A skilled Fairfax estate planning attorney will be able to sit down with you and carefully review your assets and goals. From there, your lawyer will be able to create a trust that will fit your unique situation and carry out your goals.
Understanding What Trusts Can Do For You
What is a trust, to begin with? A trust is an arrangement in which a trustee will hold and manage assets on behalf of beneficiaries named by the person creating the trust (the “grantor”). Trusts allow grantors to control how and when their assets are distributed in the future. This can help protect assets, avoid costly tax consequences, and provide a better future for beneficiaries. Generally, a trust requires three parties: a grantor (the person creating the trust), a trustee (the person or entity managing the trust), and beneficiaries (the people receiving the assets).
How Much Does it Cost to Hire a Trusts Attorney in Fairfax?
The cost to hire an estate planning attorney to create trusts for you in Fairfax, VA, can vary. Fees are typically based on the complexity of the estate, the number of beneficiaries and types of trusts involved, your own personal goals, and other factors. Our estate planning law firm will meet with you to discuss your estate plan and estimate the cost based on what you’d like done. Hiring an estate planning attorney is a small price to pay, however, compared with the costs of not having effective trusts in place to safeguard your loved ones.
Revocable vs. Irrevocable Trusts
Before you meet with your estate planning lawyer, it helps to know the basic types of trusts available to you. In general, trusts are divided into two main categories: revocable and irrevocable trusts.
Revocable trusts, sometimes known as “living” trusts, are those that can be changed, modified, or revoked by the grantor while they are living. Revocable trusts provide flexibility for alterations as your life circumstances might change. One key factor is that assets contained in a revocable trust are included as part of your estate for tax purposes. This could be preferable for some but not for others.
Irrevocable trusts are difficult to revoke or change once they are finalized. The downside to an irrevocable trust is this loss of control over certain assets. The main benefit of an irrevocable trust is the significant tax advantages and asset protection. Assets in irrevocable trusts are normally not considered part of the taxable estate, meaning those assets can be passed down to family with minimal financial consequences.
Common Types of Trusts in Fairfax, VA
Beyond the general distinction between revocable trusts and irrevocable trusts, many different types of trusts are available to estate planners. Some common trust types include:
- Living trusts: These ensure that your instructions are carried out effectively. Your property becomes owned by the trust, but you are still able to manage the assets during your lifetime. The key benefit is that since you no longer technically own the property, it does not fall into the uncertainty of probate later on.
- Testamentary trusts: Testamentary trusts are established through a will and take effect after you pass. These trusts can provide control over distribution assets while reducing tax liabilities for your estate.
- Special needs trusts: These are established for beneficiaries with special needs or disabilities. A special needs trust (or “SNT”) can make sure family members with any mental or physical limitations can have financial help without impact on their abilities to receive Social Security Disability (“SSD”) or Medicaid.
- Charitable trusts: A charitable trust is established to benefit a charity of your choosing. This trust can also be designed to provide tax benefits to you while also supporting your charitable goals.
- Spendthrift trusts: A spendthrift trust protects a beneficiary from themselves, essentially. If you have a family member who is prone to bad decisions or vulnerable to financial predators and scam artists, a spendthrift trust can help. Within these trusts, you can include specific instructions for how funds are distributed. A spendthrift trust is common for relatives who struggle with substance abuse, gambling problems, or poor influences.
A competent trusts attorney will be able to discuss what type of trust or trusts might be most beneficial to you.
Contact the Law Office of Afsana Chowdhury, PLC, For Help With Your Estate Planning Goals
Trusts are essential parts of any sound estate plan. A trust can provide you and your family with financial protection, flexibility, and tax advantages. However, trusts should be created by an attorney with experience in the area who knows which trusts can meet your goals. Most people only establish an estate plan once–get it right the first time with a knowledgeable Fairfax trusts attorney. Call The Law Office of Afsana Chowdhury, PLC today at (703) 271-6519 to schedule a free consultation.