What is an inheritance trust?

An inheritance trust is a legal tool used in estate planning law that allows individuals to minimize the amount of inheritance tax paid on their assets after their death. It is set up to transfer wealth from one generation to the next in a way that is tax-advantaged while also allowing the individual to maintain control over their assets. The trust is established by the person (known as the grantor) who is donating assets to the trust. They must specify which assets will go into the trust and how they will be distributed among beneficiaries, such as family members or charities. The grantor can also decide how long they want the trust to remain in effect. The main advantage of the trust is that the trust assets are not subject to the same taxes and fees that regular assets would be, meaning that money can be saved on inheritance taxes. Additionally, the trust prevents family disputes when it comes time to divide up the assets. In West Virginia, the inheritance trust can be either revocable or irrevocable. Revocable trusts can be changed or terminated at any time by the grantor, while irrevocable trusts cannot be changed after they have been set up. Estate planning law requires a knowledgeable attorney to assist in setting up and properly maintaining the trust to ensure that assets are transferred as intended.

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