Can I create trusts for my children under my will in Pennsylvania?
Not all trusts are created equally, so although you can leave trusts for your children in your will (known as a testamentary trust), you should do so with extreme care and preferably with the assistance of a dedicated Pennsylvania trust attorney. An attorney can help ensure that your intentions are preserved in the letter and interpretation of your will.
You can do this for several reasons because there are a number of benefits to a testamentary trust – tax shelters, protecting money from creditors, to provide for your spouse while ensuring your estate passes to your children, and more.
Testamentary trusts often fall into one of a few different categories of trust types, which include the following:
- Marital trusts allow you to leave part of your estate to your spouse without being subject to federal estate tax, although the tax will apply later when the surviving spouse passes on;
- Family trusts, also called bypass or credit-shelter trusts, provide financial support for the duration of your surviving spouse’s life and bypasses the federal estate tax when it passes to your spouse and to your children; and
- Other trust types, such as an irrevocable life insurance trust or a charitable remainder trust, perform specific and useful functions.
Considering that this is a huge decision for the future of your beneficiaries, it is wise for you to understand the ins and outs of setting up a trust plan. Not just any trust will work for the needs of your beneficiaries, which is why you should consider your options carefully.
Want to Learn More about Trusts for Children? Receive Assistance from a Pennsylvania Trust Attorney
Determining how you preserve your estate means planning carefully and making informed decisions. Speak with an estate and trust law professional about your goals for your estate and how those can be codified in your will or through other related means – 1-610-933-8069.