Pennsylvania Estate Attorney Explains Why Trusts Are Necessary for Estate Planning and What Are the Benefits of Establishing One

Oct 17, 2023

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:

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.

Kathleen Thomas

Kathleen Thomas

Pennsylvania Estate Planning and Administration Attorney

Kathleen M. Thomas is a highly accomplished attorney, specializing in municipal law and Pennsylvania Act 511 taxation. She serves as Special Act 511 Tax Counsel to townships like Lower Merion and Abington, offering invaluable tax consultation. Her extensive municipal experience, including roles as Act 511 Hearing Officer, showcases her legal acumen. Kathleen's dedication to fair tax proceedings and contributions as a lecturer highlight her commitment to professional growth. She's known for ethical standards and her legacy in municipal law, making her a trusted legal counsel and director, shaping the field's landscape with excellence.

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