While a Will is generally a must-have document when it comes to estate planning, a trust is also useful for a variety of reasons. Here are four types of trusts that you might want to consider.
Also called living trusts, this allows one to change instructions in the trust while still alive. After one passes away, the trustee acts based upon the information in the trust. Families get benefit from this trust because they generally do not have to go to probate court, so this trust offers privacy and can save time.
This type of trust could be used to protect beneficiaries from taxation as it can keep assets separate from one’s taxable estate. One with a life insurance policy might put the policy in the trust so that more money goes to loved ones instead of being taxed.
People can receive benefits by putting an estate or assets into a trust for a charity. This can give one income from a trust along with tax benefits for the gift that passes to a charity after death.
Special Needs Trusts
Despite what impressions you might have of trusts, those of any income level could have reason to create one. This is perhaps best highlighted by special needs trusts as people use this trust to make sure a family member with disabilities has funds. A family needs to establish this kind of trust so that a beneficiary has financial support but is still eligible for government assistance.
There might be many options for you based on your wishes and the type of trust you are interested in, so contact us as we will work with you to ensure you and your loved ones get the most value possible from trusts and estate planning.