Trusts

Our attorneys work closely with clients to determine which type of trust will best protect their assets.

Revocable Trusts

Revocable trusts are important estate planning tools used to minimize and defer estate taxes and bypass the probate process. These trusts may be amended or revoked at any time during your life. Typically, the grantor of the revocable trust will also be the initial trustee. Once the grantor becomes incapacitated or dies, the successor trustee will take over the trust administration.

Irrevocable Life Insurance Trusts

An irrevocable life insurance trust (ILIT) is an irrevocable trust designed to be the owner and beneficiary of life insurance policies. Under current tax law, if insurance policies are owned by an irrevocable trust and the trust is the named beneficiary, the proceeds will not be includible in your estate for federal or state estate tax purposes; provided that you survive for three years after the date any existing policies are assigned to the trust. Any new policies purchased directly by the trust will not be includible in your estate under current tax law.

Family Gifting Trusts

A family gifting trust is an irrevocable trust designed to receive and hold gifts of property. The beneficiaries are usually family members of the settlor, but can be other persons if desired. The settlor removes all of his or her rights or ownership to the assets once they are transferred into the trust, effectively removing the assets from the settlor’s taxable estate. These assets can include businesses, cash and investment assets, and life insurance policies.

Asset Protection Trusts

An asset protection trust is a trust in which the settlor creates a trust for his or her own benefit, and includes language that limits access to the assets in the event that a court or creditor is attempting to reach the assets through the clients in their role as beneficiaries. In 1997, Alaska introduced the first asset protection trust legislation. Delaware quickly followed with the act. There are currently eight (8) states with similar legislation that has abolished the rule against self-settled trusts. Alaska was the first US jurisdiction to enact laws allowing protection for self-settled trusts (in 1997) and was shortly followed by Delaware, Nevada, South Dakota, New Hampshire and a few others. The trust can be established as a grantor trust, so that any income earned by the trust is passed directly on to the settlor. If structured properly, the net effect is that the trust assets are permanently preserved for the trust beneficiaries and completely protected from creditors.

Special Needs Trusts

Special needs trusts (also known as supplemental needs trusts) enable families to leave money and other assets to disabled dependants without jeopardizing the government benefits such as Medicaid, Supplemental Security Income (SSI) or public housing to which those disabled individuals may be entitled.

Learn more about Special Needs Trusts.

Medicaid Trusts

Medicaid trusts work to preserve and protect a family’s financial assets from future nursing home and health care costs. Pabian & Russell’s experienced attorneys help clients navigate complex Medicaid rules and regulations, and protect assets without jeopardizing Medicaid eligibility.

Trust Administration & Support

Pabian and Russell’s attorneys understand that our job does not end when we have finished drafting client trusts. We continue to work with family members who are trustees as needed to advise them on how to handle complex issues related to trust distributions, tax filings, and accounting requirements for public benefit programs.