Trust Attorneys Serving Washington State

Trusts are powerful estate planning tools, offering flexibility, control and peace of mind. They can help manage and protect your assets, honor your last wishes and provide for your loved ones in a structured manner. Our team at Marine View Law can help you create a custom trust tailored to your specific situation.

Our firm’s experienced attorneys understand the demands of life in the modern world and offer contemporary estate planning solutions to meet those demands. Serving all of Washington from our offices in Normandy Park and Tacoma, call 206-792-5549 for a complimentary 15-minute consultation about strengthening your estate plan with trusts.

Types Of Trusts In Washington

Several different trusts are available in Washington state to achieve various estate planning objectives. Here are some of the most common trusts people choose:

• Irrevocable trust: You cannot modify or terminate this trust without the permission of the trust’s beneficiary. It offers significant tax advantages and asset protection.
• Revocable trust: Also known as a living trust, a grantor (trust creator) can change or revoke this trust during their lifetime. It often provides flexibility and helps avoid probate.
• Special needs trust: These aim to provide for a beneficiary with special needs without affecting their eligibility for government benefits.
• Charitable trust: Allows you to donate assets to a charitable organization while receiving tax benefits and potentially providing income to your beneficiaries.
• Life insurance trust: A life insurance trust allows the grantor to remove the life insurance proceeds from their taxable assets, which can potentially reduce estate taxes while providing liquidity to beneficiaries.
• Asset protection trust: This type of trust is designed to protect a person’s assets from future creditors or legal judgments.
• Medicaid asset protection trust: With a Medicaid asset protection trust, a person can protect their assets while potentially qualifying for Medicaid long-term care benefits.

Each of these trusts serves a specific purpose and can be a valuable component of a comprehensive estate plan. Understanding the advantages they offer can help you make informed decisions about your estate planning strategy.

When you work with Marine View Law, your dedicated estate planning lawyer will explain the pros and cons of each trust, how they can affect your estate plan and which trusts best fit your family’s situation.

Irrevocable Life Insurance Trust (ILIT)

An irrevocable life insurance trust (ILIT) is created to hold a life insurance policy for the purpose of either minimizing or eliminating estate taxes when the policy holder (the grantor) dies and the proceeds of the policy are transferred to the beneficiary/beneficiaries. To be effective in minimizing or eliminating any estate tax, it must be made irrevocable, which means that the grantor cannot change any provisions of the trust after it is created and funded. Once created and funded, an ILIT becomes the legal owner of the life insurance policy, and the beneficiary/beneficiaries of the trust will receive the proceeds of the life insurance policy upon the death of the grantor.

Special Needs Trust (SNT)

A special needs trust (SNT) is created to hold and manage assets (including inheritances and personal injury awards) for a person with a disability A SNT then allows that person to continue receiving government benefits such as Medicaid and SSI. When creating a SNT, someone other than the disabled person must appointed as trustee of the SNT, who can then manage the assets for the benefit of the disabled person who can then continue receiving public assistance. A SNT can also designate beneficiary who can receive any remaining assets held by the trust after the disabled person’s death.

Medicaid Asset Protection Trust (MAPT)

Medicaid asset protection trust (MAPT) is created to hold and manage a person’s assets (typically their home) for the purpose of allowing them to qualify for Medicaid long-term care benefits. Since there are both strict income and asset limits to qualify for Medicaid long-term care, a MAPT can help a person meet those requirements while preserving their assets from the costs of long-term care and so that those assets can be passed onto his/her heirs. To be effective in preserving assets, a MAPT must be made irrevocable, which means that the grantor cannot change any provisions of the trust after the it is created and funded. In addition, a MAPT must appoint a third-party as trustee. Once a MAPT is funded, the grantor cannot be either the owner or the beneficiary of the assets during his/her lifetime – with limited exceptions (such as having a right of possession of a home or receiving income from an asset).

The Benefits Of A Trust

Adding one or more trusts to your estate plan can offer numerous advantages. Trusts can help you manage your assets more effectively, reduce estate taxes and ensure that your wishes are carried out precisely as you intend.

They can also provide privacy, as trusts are not subject to public probate proceedings, while protecting your estate from creditors and legal challenges.

Legal Guidance For Establishing A Trust

The advantages of choosing an attorney with extensive experience and an understanding of modern estate planning needs cannot be overstated. Our experienced lawyers can guide you smoothly through the creation and execution of trusts for your estate plan.

Fill out the online contact form or call 206-792-5549 to schedule a free 15-minute consultation at one of Marine View Law‘s offices in Washington.