Maryland Attorney for Asset Protection
An integral part of successfully planning your estate is determining how best to protect your assets. Our attorneys have decades of experience protecting our clients’ assets and can help you protect yours.
Individuals and companies can take advantage of several types of trusts to help protect their property. Some trusts can be set up to give you a great deal of control over its management, allowing you to make changes you find necessary. Other trusts are designed to be difficult to amend so that the original intent of the trust is maintained. Individuals with special needs can set up a trust that protects the assets they receive from another person and allows them to get getting public assistance benefits. The type of trust best for your situation will depend on your circumstances. Our team will carefully review your case to determine the best methods to protect your assets.
For a free, confidential case review with our asset protection lawyers, call Rice, Murtha & Psoras at (410) 694-7291.
Various Types of Trusts that Can Protect Your Assets in Maryland
Establishing trusts is a fundamental strategy for protecting assets. There are various types of trusts, each designed to fulfill specific asset protection and management roles. Choosing the one that fits your situation can be challenging, which is why our asset protection attorneys are standing by to help. We will carefully review your assets and what you want to achieve through asset protection. Below are some of the asset protection trusts our team uses to protect clients’ property:
Revocable Trusts
A revocable living trust is a valuable estate planning tool in which an individual, known as the grantor, places their assets into a trust they can change or revoke at any time during their lifetime. In a revocable trust, the grantor typically acts as the trustee, providing them with more control and management over their assets.
Many people set up revocable trusts to avoid probate, maintain privacy following their death, and manage their assets in the event of incapacity. These trusts are also flexible and can be modified as their needs and circumstances evolve.
Irrevocable Trusts
On the other hand, an irrevocable living trust cannot be easily changed or terminated once established. This trust is designed to permanently transfer assets from the grantor’s estate, which helps reduce estate taxes and shield assets from creditors and legal judgments.
Many individuals choose irrevocable trusts because of the estate tax benefits and the level of asset protection they offer. Additionally, an irrevocable trust ensures that the grantor’s wishes regarding their estate are honored while also providing ongoing financial support for their beneficiaries over the long term.
Special Needs Trusts
A special needs trust is designed specifically to support individuals with disabilities while ensuring they remain eligible for essential government assistance programs, such as Supplemental Security Income (SSI) and Medicaid. This type of trust allows assets to be managed and utilized on behalf of the beneficiary, meeting their additional needs without compromising their access to crucial government benefits. Individuals with special needs can also establish this type of trust with our team if they have received money, like a legal settlement or inheritance, that they want to protect.
Charitable Trusts
A charitable trust is a form of trust established to support a specific charitable organization or to serve the public at large. It usually provides tax benefits to the donor. Its main goal is to guarantee that assets are utilized for charitable, educational, religious, or other endeavors that benefit the public good.
There are a few varieties of charitable trusts, including remainder trusts and lead trusts. A charitable remainder trust, also known as an annuity trust, is a type of trust in which a donor puts in assets and receives income derived from those assets for a predetermined timeframe. After this duration, the remaining assets are given to a specified charity. A charitable lead allocates a specific sum or a portion of its assets to a specified charity for a predetermined duration. Once that duration ends, the remaining assets are transferred to non-charitable beneficiaries, such as family members.
Testamentary Trusts
A testamentary trust is established according to the directives specified in an individual’s final will, becoming effective only after that person’s death. Its function is to oversee and allocate the deceased’s assets in accordance with particular terms and conditions, offering a degree of control over how beneficiaries receive their inheritance and protect from the probate process.
These trusts are frequently created to guarantee that the deceased’s assets are safeguarded and utilized in accordance with their wishes, as outlined in their will. This can help preserve assets for beneficiaries who might not be ready or capable of handling a sizable inheritance, like minor children or individuals with special needs.
Spendthrift Trusts
These kinds of trusts are specifically created to protect the beneficiary’s interests from their own actions. The terms of the trust limit the beneficiary’s access to the trust assets, making it difficult for them to dispose of these assets and decreasing their exposure to creditors. This arrangement safeguards the beneficiary’s assets from potential inadequate financial management and creditor claims. It gives an independent trustee the power to decide how and when the trust assets are allocated to the beneficiaries.
Residential Trusts
A qualified personal residence trust (QPRT) allows people to place their home or vacation homes into a trust for a designated period while maintaining the right to reside in the property. Once the term concludes, the property is transferred to the beneficiaries, usually the grantor’s children, at a diminished gift tax value.
Our team uses QPRTs to minimize estate taxes. This method effectively removes a valuable asset from an individual’s estate while allowing them to continue living in the residence. This provides an individual or couple with the opportunity to transfer the property to their heirs at a reduced tax rate.
Call Our Maryland Asset Protection Lawyers for Help Planning Your Estate
Call Rice, Murtha & Psoras today at (410) 694-7291 for a private, free case review with our asset protection attorneys.