With the current Federal estate and gift tax exclusion amount set at $11.4 million per person, many families have been able to shift their planning focus from death taxes to planning for the financial security of their children.
An estate plan that establishes a well-structured trust can provide future protection for children who are either unable to manage large sums of money, suffer from substance abuse, or are unsure of a projected career path. Simple estate plans often result in outright bequests to children that can lead to disastrous results. A properly drafted discretionary trust can replace the wind-fall inheritance that often occurs and replace it with a long-term financial resource that is protected from a child’s creditors – including a future divorce.
A trust allows parents to identify a standard of support for their child and determine what type of distributions should be made. Additionally, parents can set forth their wishes and intentions for the child and permit the Trustee to provide increased financial support if the child obtains certain achievements.
To learn more, please reach out to one of Leech Tishman’s Estates & Trusts attorneys.
Leech Tishman’s Estates & Trusts Practice Group is engaged in the development of practical, effective estate planning and business succession planning for individuals, families, businesses, non-profit organizations, and private foundations.
If you have any questions regarding estate & gift tax matters, please contact David J. DelFiandra, a Partner in Leech Tishman’s Pittsburgh, PA office. Dave can be reached at 412.261.1600 or firstname.lastname@example.org. Melanie Cuddyre, Estates & Trusts Associate, assisted in the preparation of this article. She can be reached at 412.261.1600 or email@example.com.
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Leech Tishman Fuscaldo & Lampl is a full-service law firm dedicated to assisting individuals, businesses, and institutions. Leech Tishman offers legal services in alternative dispute resolution, aviation & aerospace, bankruptcy & creditors’ rights, construction, corporate, employee benefits, employment, energy, environmental, estates & trusts, family law, government relations, immigration, insurance coverage & corporate risk mitigation, intellectual property, internal investigations, international legal matters, litigation, real estate, and taxation. Headquartered in Pittsburgh, PA, Leech Tishman also has offices in Chicago, Lakewood Ranch, FL, Los Angeles, New York and Wilmington, DE.