Pennsylvania Trusts: Different Types for Spouses and Children
5 Different Types of Trusts for Pennsylvania Spouses and Children
There are a number of different trust law options you can pursue in Pennsylvania if you want to leave your children their inheritance with additional protections.
A bypass or family trust (alternatively known as a “credit shelter” trust) enables you to leave a certain amount to the trust, and the rest passes to your surviving spouse tax-free.
A dynasty trust, or generation-skipping trust, lets you leave a significant sum to your grandchildren tax-free, an option that has been growing in popularity.
Qualified personal residence trusts (QPRT) allow you to leave your home as a gift to your heirs and freeze its valuation at whatever the IRS calculates it will be worth at the end of a period of time that you will still control it. This usually creates a window that allows the property to be valued less than it is and be subject to less tax exposure.
An irrevocable life insurance trust (ILIT) is useful when you leave behind illiquid assets and will let you use your life insurance to pay certain estate costs in exchange for surrendering the ownership rights to it.
A qualified terminal interest property trust (QTIP) lets you direct assets towards certain relatives; your surviving spouse will receive income from the trust, but your specified heirs will inherit the assets.
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Help from a Pennsylvania Trust Attorney
Different trusts provide different privileges, so speak with a trust attorney to get more information on how to select the trust structure that’s most appropriate for your circumstances. Schedule a no-obligation consultation with an estate management and trust law professional today – 1-610-933-8069.