Are you considering establishing a discretionary trust? As an experienced trust and estate planning attorney in Wisconsin, the Heritage Law Office can provide you with detailed information about discretionary trusts and guide you through the process of creating one. Our experienced attorneys can help you understand the benefits of discretionary trusts and determine whether it is the right option for your unique situation.
Understanding Discretionary Trusts in Wisconsin
A discretionary trust, also known as a family trust or a living trust, is a type of trust that allows a grantor to transfer assets to a trustee to hold for the benefit of beneficiaries. Unlike other types of trusts, such as revocable trusts or irrevocable trusts, a discretionary trust gives the trustee the power to make decisions regarding the distribution of assets to beneficiaries. This means that the trustee has the discretion to determine when, how much, and under what circumstances beneficiaries receive distributions.
In Wisconsin, discretionary trusts are a popular estate planning tool because they offer several benefits, including:
Protecting Assets
By placing assets in a discretionary trust, you can protect them from potential creditors, lawsuits, and other risks. Since the assets are not owned by the beneficiaries, they cannot be seized to satisfy their personal debts or judgments.
Maintaining Control
By retaining the power to appoint a trustee and determine the trust's terms, you can maintain a degree of control over the trust and its assets. This can be especially important if you have specific goals or concerns regarding the distribution of your assets.
Minimizing Taxes
Discretionary trusts can also be used to minimize estate taxes and gift taxes. By structuring the trust appropriately, you can transfer assets to your beneficiaries while reducing your tax liability.
Creating a Discretionary Trust in Wisconsin
Creating a discretionary trust requires careful planning and execution. The process typically involves the following steps:
1. Choose a Trustee
The first step in creating a discretionary trust is to choose a trustee. The trustee will be responsible for managing the trust's assets and making distributions to beneficiaries according to the trust's terms. It is important to choose a trustee who is trustworthy, reliable, and has the knowledge and experience to manage the trust effectively.
2. Define the Trust's Terms
Once you have chosen a trustee, you will need to define the trust's terms. This includes specifying the beneficiaries, the assets that will be transferred to the trust, and the trustee's powers and responsibilities. You may also want to include provisions regarding the distribution of assets, the appointment of successor trustees, and other important matters.
3. Transfer Assets to the Trust
After defining the trust's terms, you will need to transfer assets to the trust. This may involve re-titling property, opening new bank accounts, or taking other steps to ensure that the assets are held in the trust's name.
4. Fund the Trust
Once the assets have been transferred to the trust, you will need to fund the trust. This may involve contributing additional assets over time or using the trust to receive income generated by existing assets.
5. Review and Update the Trust
Finally, it is important to regularly review and update the trust to ensure that it continues to meet your goals and objectives. This may involve revising the trust's terms, appointing new trustees, or making other changes as necessary.
Heritage Law Office: Your Estate Planning Partner
At Heritage Law Office, our experienced attorneys have helped numerous clients in Wisconsin establish effective estate plans that protect their assets and provide for their loved ones. Our attorneys specialize in a wide range of estate planning services, including:
Wills and Trusts
We can help you create a will or trust that reflects your unique wishes and ensures that your assets are distributed according to your wishes.
Powers of Attorney
We can help you designate a trusted individual to make important financial and healthcare decisions on your behalf in the event that you become incapacitated.
Probate and Estate Administration
Our attorneys can guide you through the probate and estate administration process to ensure that your loved one's assets are distributed in accordance with their wishes.
Business Succession Planning
If you own a business, we can help you develop a succession plan that ensures the continued success of your business and the well-being of your family.
At Heritage Law Office, we understand that every client has unique needs and goals. That's why we take the time to get to know each of our clients and develop tailored estate plans that meet their individual needs. Our experienced attorneys can help you understand your options and develop an estate plan that provides for your loved ones and protects your assets.
Contact a Discretionary Trust Attorney in Wisconsin
If you are interested in creating a discretionary trust or have questions about how a trust can benefit your estate plan, contact the experienced attorneys at Heritage Law Office. Our knowledgeable attorneys can provide you with detailed information about discretionary trusts and guide you through the process of creating one
Contact us today at 414-253-8500 or by sending us a message to schedule a free consultation and learn more about how we can help you achieve your estate planning goals.
Cities Where We Offer Our Services
At Heritage Law Office, we offer our estate planning services to clients throughout Wisconsin, including the following cities:
- Milwaukee
- Madison
- Green Bay
- Kenosha
- Racine
- Appleton
- Waukesha
- Oshkosh
- Eau Claire
- Janesville
- Mequon
- Elm Grove
- Fox Point
- Bayside
- Shorewood
- Whitefish Bay
- Fitchburg
- Brookfield
- Waunakee
- Cedarburg
We also offer remote, phone, and online appointments, so you can receive our services wherever you are. Contact us today to learn more about how we can help you with your estate planning needs.