Wealth Preservation, Trusts and Estates

Owning S Corporation Shares in a Trust can be tricky business. There are three types of trusts that can qualifiy with the IRS to own shares of an S Corporation: 1. The Qualified Subchapter S Trust (QSST) 2. Electing Small Business Trust (ESBT) 3. Grantor Trust. There are different benefits and pitfalls for using each of these S Corporation Trust options. Read here for an overview of the compared characteristics of the QSST, ESBT and Grantor Trust. After selecting the correct Trust to own your S Corporation shares you must also make a timely IRS election to further qualify the trust.

Without proper trust planning and proper IRS election, your S Corporation could be recharacterized as a C Corporation. This is likely to have significant negative income tax consequences that can and should be avoided with advanced planning.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular Estate and Trust case to determine the appropriate planning for you and your family.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices serving Media, Exton, Downingtown, Norristown, Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Save Your Personal Injury Award With OBRA (42 U.S.C. § 1396p(d)(4)) Special Needs Trusts in Pennsylvania (PA) and elsewhere. Many individuals injured in an accident, through negligence or medical malpractice find themselves disabled to varying degrees. Among the things they can no longer do is maintain a job. Therefore these individuals receive public benefits such as Medicaid and Supplemental Security Income (SSI) to assist in maintaining their lives. Lawsuits and ultimately, large monetary awards stem from these types of injuries. It is likely that once these personal injury awards are paid to the individual, they will be disqualified from the public benefits of SSI and Medicaid. The personal injury award could be lost quickly to pay for the recipient’s ongoing medical care and living expenses. An important solution is the OBRA “Payback” Special Needs Trust. Click here to learn more about this type of trust and Special Needs Trusts in general. Generally, the benefits recipient is legally permitted to create a Special Needs Trust for his or her own benefit for the balance of his or her lifetime. This self-settled Special Needs Trust allows the personal injury award to be maintained to supplement and enhance the individual’s public benefits with the balance of the trust being paid back to Pennsylvania (PA) at the death of the recipient.
Please feel free to contact us any time at 610-933-8069 or dkaune@utbf.com to discuss your particular Estate Planning Needs to determine the appropriate structure of your planning documents.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices * Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Law Practice Locations.

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