A Practical Guide to Trusts: What You Need to Know

Thinking about setting up a trust but not sure if it's right for you? Trusts can be an incredibly useful tool for protecting your assets and ensuring your loved ones are taken care of, but they aren't for everyone. Understanding the basics is key to making the best decision for your estate planning needs.

At Van Horn Law, we help individuals and families in Allentown, PA navigate the complexities of trusts so they can feel confident about their future. Let's dive into some of the most common questions we hear about trusts.

What is a Trust?

A trust is a legal arrangement where you transfer assets to a trustee, who manages them for the benefit of others—usually family members, charities, or other beneficiaries. Trusts allow you to set rules for how your assets are used and help avoid probate, reducing stress and costs for your loved ones.

Common Types of Trusts

Trusts come in different forms, depending on your goals:

•             Revocable Trusts – Flexible and can be changed anytime.

•             Irrevocable Trusts – Permanent and offer greater asset protection.

•             Special Needs Trusts – Supports loved ones without affecting government benefits.

•             Charitable Trusts – Allows you to donate assets efficiently.

•             Spendthrift Trusts – Prevents beneficiaries from mismanaging their inheritance.

•             Testamentary Trusts – Created through a will and takes effect after death.

Do You Need a Trust?

Not everyone needs a trust, but they are especially helpful if you:

✔ Have significant assets to protect.

✔ Want to avoid probate and keep estate matters private.

✔ Have children or dependents who need financial security.

✔ Want to create a structured inheritance plan that prevents misuse.

Benefits of Setting Up a Trust

When done right, trusts offer advantages like:

✅ Protecting assets from lawsuits and creditors.

✅ Minimizing estate taxes and legal fees.

✅ Ensuring your assets are used according to your wishes.

✅ Avoiding probate court, saving time and money.

Things to Consider Before Creating a Trust

While trusts offer great advantages, they aren't without challenges. Here's what to keep in mind:

❌ Irrevocable trusts cannot be changed easily—once they're set, they're set.

❌ Costs and paperwork can vary depending on the complexity of your trust.

Can You Modify or Cancel a Trust?

Some trusts—like revocable trusts—allow you to make changes, but irrevocable trusts generally require consent from beneficiaries or legal intervention to modify.

Do You Still Need a Will?

Yes! Even if you have a trust, a will ensures:

✔ Minor children have a guardian.

✔ Assets not placed in the trust are still distributed according to your wishes.

How Much Does a Trust Cost in Allentown, PA?

The cost of setting up a trust depends on your specific needs and the level of legal guidance required. Some trusts are fairly simple, while others involve more detailed estate planning.

At Van Horn Law, we know that every client's situation is unique. Pricing can be discussed during your consultation, where we'll go over your goals, explain your options, and ensure you have a clear understanding of what to expect—whether you need a basic trust or a comprehensive estate plan.

Do You Need a Lawyer for a Trust?

While online tools can help with basic trusts, a trust attorney ensures your estate plan is legally sound and tailored to your specific needs. Our attorneys can help with:

✔ Choosing the right trust structure.

✔ Appointing a responsible trustee.

✔ Avoiding costly legal mistakes.

✔ Protecting your assets and beneficiaries.

Let's Build Your Estate Plan

At Van Horn Law, we've helped families throughout Allentown and Lehigh Valley plan for the future with well-structured trusts. 

If you're wondering whether a trust is right for you, we're here to guide you every step of the way.

📞 Call us at 610.437.2757 to schedule your consultation.