York Trust Attorney

York Trust Lawyer

To take care of your family when you are gone, it is essential to set up an estate plan for distributing your assets after your passing. Trust administration is a crucial step in the estate planning process, and grantors can ease it by specifying how they want their assets to be distributed. To create a trust that truly adheres to your wishes and meets your goals, it is important that you work with a skilled York trust attorney.

An attorney can create a trust that upholds your wishes in life and after death. At Mack & Mack Attorneys, our team of estate planning attorneys can help the people of York with their trust administration needs. Our firm has served our communities for the past 85 years. We offer exceptional and personalized legal guidance to support you.

What Is an Estate Plan?

Estate planning is the act of establishing a specific strategy for how one’s possessions will be distributed after their death. A trust is a key part of a comprehensive estate plan.

Estate plans include:

• A living will or trust
• A chosen power of attorney
• Any particular medical instructions that should be followed if the estate’s creator is incapable of making such decisions

In addition to end-of-life arrangements, an estate plan specifies the executor, who will oversee and carry out the deceased’s estate plan. It also specifies how the deceased’s assets should be distributed among their beneficiaries.

Necessary Parts of Estate Planning

Depending on your assets and wishes, the particular components you choose to include in an estate plan can vary. For some assets, probate may be necessary to divide an estate among its beneficiaries.

Probate is the legal term for settling an estate in court. It is a method for final taxes and obligations to be paid. It also transfers the ownership of assets from the deceased to named beneficiaries.

Some of the more common parts of an estate plan that may or may not be subject to probate include:

• A will or trust. A will, which goes into effect after an individual passes away, dictates which relatives are to receive which heirlooms and assets owned by the recently deceased. A will by itself, however, often must go through probate before the assets can be distributed. A living trust is configured similarly to a will, and it also outlines how the deceased’s property is going to be distributed among the beneficiaries. The biggest difference, though, is that a trust can typically bypass the probate process.
• Power of attorney. In situations where a person cannot make decisions regarding their health or finances, they can include a power of attorney designation in their estate plan. This gives someone the ability to take these actions on their behalf. Typically split between a financial power of attorney and a health power of attorney, these individuals are in charge of crucial decisions, such as handling financial and business matters or making medical decisions.
• End-of-life arrangements. Most estate plans include end-of-life arrangements so that the deceased’s wishes for memorial services, cremation, burial, and other matters are carried out. The executor of an estate can then use these requests to properly plan out the appropriate end-of-life services.

Regardless of whether a person has a will or not, their estate might go through probate if it contains certain assets. Real estate property, anything owned by the deceased alone, and interests in partnerships, LLCs, and more are all subject to probate.

What Is a Trust?

Property management is offered both throughout life and after death via a living trust. If someone is made the founding trustee, the trust names a replacement in the event of their death. A trust can be divided among heirs in the event of the trustor’s (the person who created the trust) passing, without probate.

For those choosing to create a will, probate is an expected part of dividing up an estate, which can take months in court to settle. Alternatively, a trustor can establish a living trust for their beneficiaries that avoids the probate process, which allows them to leave their estate to any named heirs. These heirs will automatically inherit this property upon the death of the trustor.

A trust does not need to be divided in court, meaning that the deceased’s estate does not need to be made public for it to be settled. Additionally, if the trustor holds property in various states, a trust allows them to pass it without having to go through additional legal processes.

Differences Between Types of Trusts

South Carolina trust laws recognize several kinds of trusts, each with their own legal implications. Depending on the estate and the beneficiaries of that estate, the trust that most suits an individual’s estate plan can vary. The main types of trusts recognized by South Carolina include:

• Revocable living trust. A revocable family trust or revocable living trust is the most typical kind of trust. It can be altered during the trustor’s life. The major benefit of this kind of trust is that it avoids the probate procedure. A trustee, who is going to be responsible for distributing the trust’s assets, must be selected when establishing a revocable trust.
• Irrevocable living trust. An irrevocable family trust or asset protection trust is another form of trust that is often used in South Carolina. This kind of trust offers security for the trust’s assets, which would be crucial if the founder had a civil claim filed against them and their assets were demanded as compensation. An asset protection trust’s main drawback is that it cannot be terminated once signed.
• Special needs trust. A special needs trust is established for a person who is mentally or physically disabled, and it is controlled by federal and state legislation. In York, 15.8% of the population has a disability. The funds placed in such a trust must be used for the special needs person. They cannot be used on any expenses covered by Medicaid, Medicare, or any other state agency. When an organization has spent all its resources, a special needs trust assists in covering the costs that Medicaid or Medicare does not.
• Irrevocable life insurance trust. A trust that is revocable but only retains life insurance so that it can be paid to the trust is known as an irrevocable life insurance trust. This enables the trustor to control how the money is managed after their passing.

Knowing which trust is applicable for a specific kind of estate requires the help of an estate planning attorney. Similarly, knowing which assets to add to a particular trust and who they are to be given to is important before creating a trust.

Are Both a Will and Trust Necessary?

Those with a living trust are still going to require a will in most cases. It may never be put to use, but a will should still be written to aid in the asset distribution process. Although a trust can outline assets and financial decisions, it does not cover childcare and custody arrangements like a will would. For those with small children, a will can designate a guardian for those children upon the trustor’s passing. Over half of Americans do not have a will.

Accounting for any assets that have not yet been placed in a trust could warrant the creation of a will. For example, if a trust is created before the acquisition of a timeshare property, but the trustor passes away before placing it in a trust, a will would be useful for naming the heir to that property.

People frequently establish trusts but neglect to legally transfer property to the trust, for example, by failing to update the deed to their home. To specify how assets that are not part of the trust should be dispersed, the trustor should create a will as a backup. If they do not have a will, South Carolina state law determines which of their closest relatives would inherit any property that has not been transferred by a living trust or other means, such as joint tenancy.

Why Would You Want a Trust Instead of a Will?

A comprehensive estate plan would include both a trust and a will. You may want to create a trust in addition to a will for reasons like:

• Privacy. Assets that transfer in probate court under a will are public record. A trust transfers your assets in private, with less court oversight.
• Avoid probate. Trust assets do not enter the probate court’s jurisdiction, like the York County Probate Court, which minimizes the costs and time spent in probate.
• Faster transfer. A trust transfers your assets to your beneficiaries more quickly, rather than the assets being held up in probate.
• Use of assets. A trust can enable the delay of assets to descendants or other beneficiaries.

What Are the Benefits of a Trust?

Because of the many advantages they offer to an estate plan, living trusts have been increasingly common over the past few decades. Among those advantages are:

• Flexibility. Trusts have developed to the point that practically any estate planning goal may be achieved by using a living trust, which is now readily available.
• Control. When making an outright delivery of property in a last will and testament, a person immediately relinquishes all control over the property. Through the trust provisions they establish as the trustor, however, they can effectively retain some control over the assets they place in a living trust.
• Asset protection. By establishing the proper kind of living trust, a trustor can shield their assets from creditors while they are still alive. Assets can also be protected from a spendthrift beneficiary and/or the beneficiary’s spouse, especially if the beneficiary later gets divorced.

Trusts also offer the privacy of handling affairs outside of the public eye by avoiding probate. If you are interested in establishing a living trust, speak with a York trust lawyer today.

FAQs

Q: What Is the Average Cost of a Trust in South Carolina?

A: The average cost of a trust in South Carolina depends on:

• The specifics of your estate
• The trust document you make
• Whether you work with an attorney to create the trust

A more complex estate can take longer to put into a trust, and in-depth guidelines for the trust can be more time-consuming and costly to create. Working with an attorney can increase costs, but it also helps you make a trust that is enforceable and protects your assets.

Q: What Is the Major Disadvantage of a Trust?

A: One major disadvantage of a trust is the cost and time it takes to set up, and a trust requires more regular maintenance. A trust can be very beneficial when protecting your assets and avoiding probate. It can save you and your loved ones a lot of money in your life and after your death, but they are expensive to create, fund, and maintain. An attorney can assess the benefits and drawbacks of a trust for your unique trust case.

Q: Why Would You Put a House in a Trust in South Carolina?

A: Putting a house in a trust in South Carolina can make it easier to transfer the property to your family after your death, rather than the home going through probate court. This minimizes the time the property spends under probate court jurisdiction and the taxes that apply to your estate. There is a 76.2% homeownership rate in York County. Certain trusts can also add protections for a house that prevent the property from being seized by some creditors.

Q: Do You Need to Hire a Trust Attorney in York?

A: While you aren’t required to hire a trust attorney in York, it is highly recommended and beneficial that you do. If you create a trust yourself, it is much more likely to be unenforceable, have unclear terms, and fail to provide the benefits you can secure with a trust. An asset protection lawyer can create a trust that is legally sound and clearly outlines your wishes during your life and after your death.

Consult an Experienced South Carolina Trust Lawyer

Planning for the unexpected might be unpleasant for some people, but it’s important for your family to be protected and your assets distributed how you want them to be. At Mack & Mack Attorneys, we can assist with the estate planning process. We can take additional care to include all essential elements of the plan in your estate plan. Contact us today for additional information about our services.