Nassau County trust attorney Seth Schlessel (https://www.schlessellaw.com/what-is-a-credit-shelter-trust/), from Schlessel Law, PLLC, has provided valuable insights into the purpose and advantages of credit shelter trusts in estate planning. With the primary goal of maximizing the amount of wealth passed on to heirs, these trusts play a critical role in minimizing estate taxes. Seth Schlessel discusses how a credit shelter trust can ensure financial security for loved ones while adhering to current tax laws.
A credit shelter trust, also known as a bypass trust, is a tool that Nassau County trust attorney Seth Schlessel encourages individuals to consider as part of their estate plans. By utilizing this type of trust, couples can safeguard their estate from excessive taxation upon the death of the first spouse, ensuring that the surviving spouse maintains financial stability. “A credit shelter trust allows a married couple to double the estate tax exemption amount, effectively bypassing a large portion of estate taxes that would otherwise be due,” says Seth Schlessel. This method can preserve assets for future generations and reduce the financial burden on surviving family members.
Nassau County trust attorney Seth Schlessel also emphasizes that a credit shelter trust is particularly beneficial for individuals in states such as New York, where estate taxes can be a significant concern. With Nassau County residents often facing the challenge of high property values and complex tax laws, Schlessel explains how this type of trust can help families avoid losing a substantial portion of their wealth to estate taxes. By setting up a credit shelter trust, individuals can take advantage of both the state and federal tax exemptions, ensuring a smoother transition of assets.
A key benefit of a credit shelter trust is that it allows the surviving spouse to access income from the trust without including the trust’s assets in their taxable estate. Nassau County trust attorney Seth Schlessel highlights this as one of the primary reasons families choose this option when planning their estates. “The surviving spouse can still benefit from the trust’s income, but the principal remains protected and will pass on to the heirs without being taxed again,” Schlessel explains. This approach can substantially reduce the overall tax burden on an estate, leaving more for the family to inherit.
In the article, Seth Schlessel outlines how a credit shelter trust works in practice. Upon the death of the first spouse, a portion of the couple’s assets is transferred into the trust. This amount is equal to the federal estate tax exemption, which currently stands at $12.92 million per person as of 2023. The assets placed in the trust are then exempt from federal estate taxes. Meanwhile, the surviving spouse retains access to income generated by these assets, without ownership of the principal. When the second spouse passes away, the trust’s assets are passed on to the heirs tax-free.
For Nassau County trust attorney Seth Schlessel, the goal is to help ensure that families can preserve their wealth and transfer it to future generations as seamlessly as possible. The Nassau County trust attorney advises that credit shelter trusts are especially useful for those with substantial assets who want to minimize tax liabilities. Additionally, Schlessel encourages couples to review their estate plans regularly, especially when there are changes in tax laws or in their financial circumstances. “It’s essential to revisit your estate plan periodically to make sure it still aligns with your goals and the current legal framework,” Schlessel notes.
A properly structured credit shelter trust requires careful planning and legal guidance, and Nassau County trust attorney Seth Schlessel is dedicated to helping clients navigate this process. Schlessel’s experience with New York estate laws and commitment to protecting families’ financial futures can help those looking to establish a credit shelter trust. In the article, the Nassau County trust attorney provides a clear explanation of how this type of trust works and why it can be an important component of a comprehensive estate plan.
For individuals and families considering their options for estate planning, Seth Schlessel recommends consulting with a knowledgeable attorney to explore whether a credit shelter trust is the right choice. This type of trust is particularly advantageous for those who want to protect significant assets from estate taxes while ensuring that their spouse and heirs are well taken care of. Schlessel Law, PLLC is committed to providing Nassau County residents with effective legal strategies to protect their assets and secure their family’s future.
About Schlessel Law, PLLC:
Schlessel Law, PLLC, located on Long Island, New York, focuses on estate planning, trust creation, probate, and elder law. Led by Nassau County trust attorney Seth Schlessel, the firm is dedicated to helping individuals and families protect their assets and ensure a smooth transfer of wealth to future generations. Schlessel Law, PLLC can offer personalized legal solutions that are tailored to the unique needs of each client.
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Company Name: Schlessel Law PLLC
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Phone: (516) 574-9630
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City: Mineola
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Website: https://www.schlessellaw.com/