Controlling Assets After You Pass
Jennifer C. Rydberg, Attorney at Law
Kent, Washington, Wills and Trusts Lawyer
A testamentary trust enables you to pass assets to a spouse without triggering inheritance taxes and control how your assets are managed and distributed after your death. Jennifer C. Rydberg has practiced estate planning law for nearly 30 years. She can advise clients on how to structure trusts for maximum advantage and compliance with Washington State laws.
Ms. Rydberg has served clients in King County, and Pierce County since 1978. Call (425) 235-5535 to arrange a meeting to discuss your needs.
What Is a Testamentary Trust?
A testamentary trust is a trust created within a will and does not take effect until after the death of the grantor. Once the grantor of the trust has passed away, the appointed trustee, usually the surviving spouse, will follow the deceased’s wishes in administering the trust to its beneficiaries. This type of trust is also known as a credit shelter trust, marital deduction trust, or A-B trust.
Jennifer C. Rydberg will take the time to discuss your estate planning goals and whether a testamentary trust makes sense for your situation. It is commonly used by people who want to:
- Control assets after they pass. For example, it may provide for the education of minor grandchildren rather than leaving them a lump sum of money. You can stipulate how and at what age your heirs will inherit.
- Take advantage of the inheritance and estate tax exemptions. Qualifying assets (and their investment growth) left in trust to a spouse bypass the probate process as pass-through income and are not subject to Washington's inheritance tax or federal estate tax.
- Provide for their own offspring. In a blended family, for instance, you could provide for your widowed spouse, but after his or her death the trust assets would revert to your children from a prior marriage.
- Provide for the needs of a spouse who is not competent to handle his or her own finances.
Although the beneficiaries of the trust have an interest in it, the trustee is the manager of the property owned by the trust. The trustee has the power to do the following as trustee of the trust:
- Control the management of the assets
- Make decisions about the investment of the trust assets
- Prepare and file tax returns on behalf of the trust
Selecting a manager of your trust is a serious matter. Make sure your loved ones are properly cared for after your death with the help of Jennifer C. Rydberg. To arrange your initial consultation, contact her office today through this website or by calling (425) 235-5535.
