At Kallio Law Firm, where we serve clients in Prairieville, Ascension Parish, and the Greater Baton Rouge area, we take the time to customize estate plans to meet our clients’ specific needs. While trusts are not right for everyone, they are certainly not only meant for the wealthy. Creating trusts can help to simplify successions (“probate” in other states), plan for Medicaid, avoid excessive taxation, provide for family members with special needs, or serve a variety of other purposes.
If you are in search of a capable trusts attorney in Louisiana, contact Kallio Law Firm today. When you work with our practice you will be dealing directly with our lead attorney, Eric Kallio who has a well-deserved reputation for integrity and compassion as well as for excellent legal skills. He will provide you with well-thought-out advice and keen insights that will guide you to make wise decisions for yourself, your family, and your financial future.
What Is a Trust?
A trust is a legal arrangement in which the person making the trust (called the settlor or grantor) appoints someone else (the trustee) to manage their assets for the benefit of their beneficiaries. Because trusts are legal documents, they must be carefully crafted. This is why you need a knowledgeable trust attorney.
Common Types of Trusts
Below is a sampling of common trusts that may be worth considering for your estate plan:
Testamentary Trust is created within a Will to provide for minor children, provide taxation shelters to a surviving spouse, to provide assets to heirs with controls to prevent abuse and spending..
Revocable Living Trust is a separate legal document from a Will. The two are used in combination to ensure that the settlor’s instructions are properly carried out. In a revocable trust, the trust takes ownership of your property, though you continue to manage it during your lifetime. Because you no longer legally own the property, however, the trust does not have to go through probate. This is especially helpful if you own out-of-state or overseas property, or have a blended family with children from previous marriages.
Special Needs Trust
A special needs or supplemental needs trust can be created to provide for a disabled child or adult who is receiving public benefits such as Social Security Disability or Medicaid. Because these government benefits are means-tested, an inheritance or other influx of funds may disqualify a special needs individual for these benefits. Establishing a special needs trust can allow them to receive the government funds they’re entitled to while enhancing their lifestyle.
Spendthrift Trust
In more families than you might expect, there is a member who has a serious problem managing money. In some cases, this may involve a learning disability; in others, it may be due to immaturity, irresponsibility, or difficulties related to substance abuse or gambling. A spendthrift trust is designed to protect the beneficiary who cannot manage money from their own worst impulses. With a trustee managing their funds, the beneficiary of a spendthrift trust can have funds doled out regularly or bills directly paid by the trustee, preventing the irresponsible party from blowing through their inheritance and falling into debt.
Medicaid Trust
Medicaid trusts are a vital component of numerous estate plans. The hard fact is that 70 percent of adults over 65 will require skilled nursing care during their lifetimes. All but the wealthiest of them will require Medicaid since nursing home care, for most, is prohibitively expensive.
Because Medicaid is needs-based, if you have a decent income and reasonable assets, unless you transfer your assets into an irrevocable trust, you will likely be ineligible for the benefits you need. By having us create a Medicaid trust, you will not only make sure you maintain Medicaid eligibility, you will also protect your assets from being depleted by the cost of skilled nursing care. We will assist you in Medicaid planning as soon as possible because Medicaid has a 5-year lookback period.
Charitable Trust
One way to solidify your charitable legacy is by establishing a charitable trust. Several types of charitable trusts exist, and Eric Kallio has an in-depth understanding of each to help you choose the one most closely aligned with your goals. For example, a charitable remainder trust allows your property to be transferred into the trust and a person you name to receive income from the trust for a set time period, after which the charity will be the “remainder” beneficiary.
Trusts To Protect High-Net-Worth Estates
For high-net-worth individuals anxious to preserve their wealth for future generations, we are apt to recommend one of the following:
- Irrevocable life insurance trust
- IRA trust
- Family trust
- Generation-skipping trust
- Gift trust
- Grantor retained annuity /unit trust
- Qualified personal residence trust
- Spousal lifetime access trust
At Kallio Law Firm We Know the Ins and Outs of Trusts
The Louisiana Trust Code is a lengthy, complicated document, and the rules governing how trusts must be constructed and managed are complex. Our experienced trust attorney will work closely with you to establish trusts that suit your needs and objectives. Whatever the size of your estate, establishing trusts is an effective way to protect your assets and provide for loved ones.
The Importance of Trust Administration
As a trust attorney, Eric Kallio routinely advises clients who have taken on the role of trustee about how to carry out their duties. If you have become a trustee, it is imperative to understand that the job entails:
- Notifying beneficiaries of the settlor’s passing
- Inventorying and appraising trust assets
- Reviewing trust distribution obligations
- Managing and distributing trust assets
- Obtaining court authorization if needed
- Preparing trust accountings
- Working with accountants to file income tax returns
It must always be remembered that a trustee is considered a fiduciary so you must always work in the best interests of the beneficiary and will be held accountable for any mistakes or misconduct. For this reason, being a trustee can be a burden unless you have access to the input of a well-informed, detail-oriented trust attorney.
Contact Kallio Law Firm Now for Trust Advice You Can Trust
Whether you are considering creating a trust to strengthen your estate plan or have been appointed a trustee, our experienced trust attorney can be invaluable. Once you get in touch with Eric Kallio, you will know you are dealing with a true professional who takes a personal interest in your well-being.
