A trust can provide many benefits, both for the person creating the trust (called the grantor) and the trust’s beneficiaries. The foremost of these benefits are asset preservation, tax minimization and provision of funds to family members.
At CNRWA, we have extensive experience creating and administering all types of revocable and irrevocable trusts. We understand the many complexities of these legal instruments and how to use them to achieve our clients’ goals.
Testamentary Trusts Vs. Living Trusts
The testamentary trust is one of the most useful types of trusts, providing many advantages to the grantor compared to a living trust. Unlike a living trust that is created during the lifetime of the grantor, a testamentary trust is created in a will and goes into effect upon the death of the grantor. This can preserve assets and give the decedent some measure of control over them, even after he or she has passed away. It can also reduce or avoid capital gains taxes in some cases.
Some of the testamentary trusts that are available in Washington include:
- Marital deduction trust — Enables you to take advantage of the marital deduction provisions of the federal tax code
- Special needs trust — Enables you to provide for the needs of a disabled minor or adult child
- Credit shelter trust (also known as a bypass/credit trust or exemption equivalent trust) — This trust passes a decedent’s assets to a trust rather than directly to the decedent’s spouse. This can reduce or eliminate the possibility that the spouse’s estate will subsequently be subject to the estate tax threshold.
Many more testamentary and living trust arrangements are possible. Let us use our knowledge and experience to help you achieve your goals.
Revocable Vs. Irrevocable Trusts
A revocable living trust can be used to avoid the costs of probate. Since probate costs in Washington are not charged on a percentage basis, these may have limited value for most residents of our state. An irrevocable trust may provide many advantages, particularly if the goal is to minimize taxes.
Our estate planning attorneys understand the advantages and limitations of the many types of trusts available in Washington. We can review your situation, explain your options and guide you to the solution that is right for you and your family.
Contact One Of Our Attorneys Handling Trusts
To schedule a consultation about the creation of a trust, contact us online or call us at 425-247-3984. We provide advice and services to people in Snohomish County, Skagit County, Whatcom County and northern King County.