With so many different trust types to choose from, it can be tricky to decide which is the best for you. When choosing a trust, you should be able to protect your assets and loved ones while accomplishing your estate planning needs.
Asset Protection Trusts
Asset protection trusts are the perfect way of protecting the assets you have most creditors. This is important when you are concerns about any threats against your estate.
Revocable trust can be canceled or changed any time, for any reason, as long as the grantor is mentally competent and living. The grantor is the person who created the trust and are putting their asets into the trust.
Irrevocable trusts are the opposite of the revocable trusts mentioned above, as it cannot be changed at all without the agreement from all of its beneficiaries. Although they sound scary as they cannot be changed, certain situations might make this option beneficial. Speak to one of our experienced estate planning attorneys to determine what is the best for your specific circumstance.
Charitable trusts is when the beneficiary is a charitable organization. It falls under the irrevocable trust, but comes with some tax benefits.
Insurance trusts are also a form of irrevocable trust. It is established by using an insurance policy as an asset. The benefit of this type of trust is that estate taxes on money received from this policy when you pass away can be avoided.
Special Needs Trusts
Special Needs Trusts are a great way to protect any beneficiary with special needs so they can receive the financial support without getting in the way of eligibility of government financial aid, such as Medicaid or Social Security Income.
Blind Trust is a type of living trust where grantors and its beneficiaries have very little knowledge about the assets included in the trust. If you anticipate conflict of interest, this is a great option.
Deciding which Trust is Right for You?
There are many benefits to trusts, such as tax benefits and avoidance of probate. However, with so many options, it might not be the easiest task to determine which one will benefit you the most.
Contact one of our experienced Estate Planning lawyers to help you go through the motion of this process and aid you in making the best decision process for you and your loved ones.