Trusts, also known as living wills, are among the most beneficial and underutilized estate-planning tools in South Carolina. They can prevent inheritance disputes and financial mismanagement, all while providing trustees and beneficiaries with certain tax benefits. Our experienced estate attorneys at Gil Gatch Law help clients explore trust options that protect assets, support loved ones, and align with their long-term financial goals.
Trusts Available in South Carolina
Trust funds aren’t just for the wealthy. South Carolina offers various options to protect your elderly parents’ home and support your church. At Gil Gatch Law, we can help you choose from the following trust accounts:
- Revocable Trusts (Living Wills): These can be used instead of a will to avoid probate. They essentially remove the assets from your name but leave you as the trustee. You can name beneficiaries and change or revoke the trust during your lifetime.
- Irrevocable Trusts: You must give up ownership – though not necessarily control – of your assets to open an irrevocable trust account. However, it has significant tax benefits and can protect your estate from future creditors and liens.
- Spendthrift Trusts: These trusts have special ‘spendthrift provisions’ designed to prevent the beneficiary from wasting funds. They can direct the trustee to distribute funds only to certain expenses, such as the mortgage, or set a designated distribution amount.
- Charitable Trusts: Benefit registered not-for-profit corporations with various tax incentives.
Our attorneys can also help you structure trusts that take effect upon your passing, trusts that benefit surviving spouses, and life insurance trusts that reduce estate taxes.
Benefits of Opening Summerville Trust Accounts
Although moving assets out of your name seems like a significant decision, you can remain the trustee and beneficiary in some instances. Trusts have various benefits, but they’re most often used for the following reasons:
Asset Protection
Trusts can protect your assets from future creditors and reduce your net worth. By placing funds in the correct trust account, seniors can qualify for Medicaid and other welfare benefits while protecting their children’s inheritance. Trust funds have certain tax benefits for the same reason.
Avoiding Probate and Estate Taxes
Once you place your assets in a trust fund, they’re vested in the named beneficiary. This means they do not pass in accordance with the will. There is no probate process, and your family may have immediate access to needed funds upon your passing. Trusts also remove assets from the estate, reducing your overall estate tax burden. Although South Carolina no longer has a state estate tax, federal and other state taxes may still affect your assets.
Reputable Trust and Estate Lawyers in Summerville, SC
You can benefit from opening a trust fund in Dorchester County even if you want to retain control over its terms. This is an essential part of the estate planning process for seniors retiring in Summerville, as it can ensure they qualify for certain healthcare benefits. Discuss the benefits, fees, and legal requirements for opening a trust fund in South Carolina with our experienced estate planning team today. Call (843) 800-2020 or connect with us online to schedule a confidential consultation.