Kathleen Thomas, a seasoned Pennsylvania estate attorney, offers valuable insights into the necessity of trusts in estate planning and the benefits they can bring to various situations.

Special Needs Trusts: A Necessity for Some

Trusts are crucial when a disabled individual is a beneficiary of your estate. Special Needs Trusts are designed to ensure that funds are used for the beneficiary’s specific needs without affecting any state funding they might receive, at least in Pennsylvania. Even individuals with relatively modest assets, perhaps around $200,000, set up Special Needs Trusts to safeguard their loved ones’ benefits. This way, a small inheritance won’t jeopardize the disabled person’s essential support.

Considerations for Other Trusts

For those without disabled beneficiaries, the value of trusts becomes apparent when dealing with substantial estates. If you plan on leaving an excess of a million dollars, establishing a trust can be advantageous. However, it’s essential to note that trusts can bring complexities, especially for the settler, the person establishing the trust. Medicaid considerations are crucial in such cases. If Medicaid assistance might be required down the road, the assets placed in the trust might need to be reclaimed, which requires careful planning.

In summary, trusts are not a one-size-fits-all solution in estate planning. Their necessity depends on individual circumstances, including the presence of disabled beneficiaries or substantial assets. Consulting with an experienced estate attorney like Kathleen Thomas can help you navigate these considerations and determine the most suitable approach to protect your assets and provide for your loved ones.

If you live in Pennsylvania, and would like to hire Kathleen for your Estate Planning and Administration Case or legal assistance, visit Kathleen Thomas’ profile on the Esquire Elite website here: https://www.esquireelite.com/attorney/kathleen-thomas/.

Disclaimer: The information in this article is not intended to be legal advice. Each situation is different, and the insurance laws in your state may differ from those discussed in this article. Please seek the advice of a professional for any questions related to your specific situation.

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