Business and Estate Planning
that makes sense

Trusts 

What is a Trust?  Why would I want one?

A trust is really just like a Will, it contains instructions for what you want to happen to your assets when you die.  However, unlike a Will, a trust avoids probate at death, allows you to control your assets, and may prevent a guardianship if you become incapacitated.  

Up until fairly recently, the term "trust" meant something that very wealthy people have.  While it's true that a trust can be used to hold significant wealth, there are other reasons why we at Mark Pirozzi LLC  may recommend the establishment of a trust for you and your family. 

A trust is private and avoids probate

Whether you have minimal or significant assets, after your death, the probate court requires your executor to list every item you own.  If your name is on your house, your bank accounts, your securities accounts, your stocks and bonds, etc., those are all required to be listed by your executor on the probate court forms.  If you form a trust, you now have a basket.  If during your lifetime or by your will, you state that you want your assets to transfer to your trust, you in effect place all the items you own in that basket.  The trust now owns those assets, and they are not listed on the probate court forms.

You control the assets

To establish a trust, you sign a trust agreement that contains specific directions as to how you want your assets to be distributed after your death.  While there are some restrictions, as the grantor of a trust, you have wide latitude in how and when your trust assets are distributed. 

Provides Creditor Protection

You have the ability to provide your beneficiaries with the requirement or option to keep the assets in trust and not in their name.  This achieves the objective of keeping those assets away from future creditors or potential divorce settlements of your children.

A trust is flexible

Perhaps the greatest advantage to establishing a trust is that during your lifetime you can change it, modify its terms, add assets to it, use assets you put into it and generally treat it as your own basket, which it is, until your death.  Before the federal estate tax exemption reached its current level of $5,250,000, trusts were used to take advantage of the marital deduction and exemption amounts to the fullest extent possible.  If the federal exemption amount changes, you can modify your trust to take advantage of tax savings.

At Mark Pirozzi LLC we tailor your trust to meet your specific needs and objectives.  As a small office, we are able to get to know you and your unique circumstances.  We work with you to design a trust that meets your needs and that you understand.  Contact our knowledgeable estate planning attorneys at Mark Pirozzi LLC to find out if a trust is right for you.