If you are a Pennsylvania resident who is currently taking steps toward preserving your wealth for future generations, you may be giving some though to creating an irrevocable living trust. As the name suggests, you cannot change an “irrevocable” living trust once you create it, but there are many advantages that can make establishing such an arrangement an important component of your estate planning process.
At the law offices of John A. Cochran, Esquire, in Pennsylvania, we understand how difficult your life is when you are the parent of a disabled child. Depending on the nature of your child’s disability, you may need to provide him or her with substantial daily care. Naturally you are concerned about who will continue to provide this care if and when (s)he outlives you, which in all likelihood (s)he will.
At the moment, you may be putting away a lot of money into a trust that your child can inherit at a later date. Unfortunately, some people cannot handle coming into a lot of money quickly and may end up spending the money on frivolous material possessions, on friends, or on lavish vacations. That is why some parents turn to placing spendthrift protections into their Pennsylvania trusts so that their children cannot access the money unless they spend it as the parents wish.
Planning for the management of a sizable estate in Pennsylvania might well include establishing a charitable trust. This is a noble gesture as well as a potential tax relief. However, one must typically understand the way the court is involved in the maintenance and re-evaluation of trusts in order to ensure the longevity of the charitable pursuit.
Pennsylvania parents want to do all they can to make sure their children’s trust is well administered and that their children will successfully inherit the assets in the trust. Some adults may decide they cannot trust anyone but family to be a trustee, and put one of their own siblings in charge of the trust. However, this actually can be a bad idea and invite more trouble than it is worth.