Best Trusts Lawyers in Wisconsin

About Trusts Law in Wisconsin, United States

A trust is a legal arrangement where one party, known as the grantor or settlor, allows a trustee to manage property or assets for the benefit of another party, known as the beneficiary. In Wisconsin, trusts are often used as estate planning tools to manage assets during a person's life and to distribute assets after death. Trusts can offer flexibility, maintain privacy, and help families avoid probate, which can be a lengthy and public legal process. Wisconsin recognizes several types of trusts, such as revocable living trusts and irrevocable trusts, each with its own advantages and requirements.

Why You May Need a Lawyer

While creating a trust may seem straightforward, there are many legal intricacies involved. Here are common situations where legal help is advised:

• Setting up a revocable or irrevocable trust to manage family assets
• Making special arrangements for minor children, disabled adults, or vulnerable family members
• Ensuring your trust meets Wisconsin legal standards
• Changing or updating an existing trust after major life changes
• Disputes among trustees or beneficiaries
• Navigating taxes and legal requirements related to trusts and estates
• Administering a trust after the death or incapacity of the grantor

An experienced trusts lawyer can help you avoid errors, interpret complex legal terms, and make sure your wishes are properly documented.

Local Laws Overview

Trusts in Wisconsin are primarily governed by the Wisconsin Uniform Trust Code (WUTC), found in Chapter 701 of the Wisconsin Statutes. Here are key aspects to consider:

• Creation and Types of Trusts: Wisconsin law allows for different types of trusts, including revocable trusts, irrevocable trusts, testamentary trusts (established by will), and special needs trusts.
• Trustees: The trustee must manage trust assets according to both the terms of the trust and Wisconsin law. Trustees have a fiduciary duty to act in the best interests of the beneficiaries.
• Modification and Termination: Trusts can sometimes be modified or terminated, but the process depends on the terms of the trust and whether it is revocable or irrevocable.
• Probate Avoidance: A properly structured trust can keep assets out of probate court, allowing for faster and more private transfer of assets.
• Tax Implications: Trusts can affect income, estate, and gift taxes. It is important to work with a professional familiar with both state and federal tax laws.
• Reporting and Administration: Wisconsin law requires trustees to keep detailed records and, in some cases, provide accountings to beneficiaries.
• Special Considerations: Special rules may apply to trusts for minors, people with disabilities, or charitable organizations.

Frequently Asked Questions

What is the main difference between a revocable and an irrevocable trust?

A revocable trust can be changed, modified, or cancelled by the grantor at any time, as long as they are alive and competent. An irrevocable trust, once established, typically cannot be changed except under special circumstances.

Can a trust help my family avoid probate in Wisconsin?

Yes. Assets placed into a properly funded trust will not go through probate after your death, allowing beneficiaries to receive their inheritance more quickly and privately.

Do trusts protect assets from nursing home expenses or Medicaid in Wisconsin?

Some irrevocable trusts can help protect assets from being counted for Medicaid eligibility, but this area is complex and subject to strict rules and look-back periods. Professional legal advice is essential.

Who can be a trustee in Wisconsin?

A trustee can be an individual, such as a family member or friend, or an institution such as a bank or trust company. Trustees must be at least 18 years old and capable of managing the trust responsibly.

How do I change the terms of my existing trust?

If the trust is revocable, the grantor can generally amend it. If it is irrevocable, changes are much more limited and usually require consent from beneficiaries or court approval.

Are trusts only for wealthy people?

No. Trusts can benefit individuals and families with modest estates, especially if there are concerns about probate, privacy, special needs, or blended families.

Can I serve as both the trustee and the beneficiary of my own trust?

Yes, in Wisconsin, you can be both the initial trustee and the beneficiary of your revocable living trust while you are alive.

Are trusts subject to taxes in Wisconsin?

Yes. Trusts may be subject to income taxes at the state and federal level. Additionally, assets transferred to irrevocable trusts may have estate or gift tax consequences.

What happens to a trust when the grantor dies?

After the grantor's death, the successor trustee takes control of the trust assets and manages or distributes them according to the instructions in the trust document.

Do I need a lawyer to set up a trust in Wisconsin?

While it is not legally required to use a lawyer, working with an attorney ensures your trust is valid, properly funded, and meets your goals. Mistakes can create costly issues for your heirs.

Additional Resources

Several resources and organizations in Wisconsin can provide further guidance or answer questions related to trusts:

• Wisconsin State Bar Association - Estate Planning Section
• Wisconsin Department of Health Services - for information on special needs trusts and Medicaid planning
• County Register in Probate Offices - for local probate-related procedures
• Wisconsin Law Library - for access to statutes and forms
• Legal Action of Wisconsin - for nonprofit legal assistance for eligible individuals
• Local community legal clinics or elder law programs

Next Steps

If you are considering creating a trust or have questions about an existing trust in Wisconsin, take the following steps:

• Assess your goals for your assets, your family situation, and any specific concerns you may have
• Gather information about your assets, liabilities, and intended beneficiaries
• Contact an experienced Wisconsin trusts and estates attorney to discuss your needs and review your options
• Review any recommendations or drafts your attorney provides and ask questions to ensure you understand your plan
• Once your trust is prepared and signed, be diligent about titling assets to the trust as required
• Keep your trust documentation in a secure location and update it as your circumstances change over time

Taking these proactive steps with professional guidance can provide peace of mind and help protect your assets long term. If you need legal assistance, do not hesitate to consult with a qualified trusts lawyer in Wisconsin.