There are many different types of trusts that are possible in an estate plan. Each one has a specific purpose, and many people are not fully aware of the differences. Whether you want to protect your assets or reduce tax liabilities, establishing a trust could be a good legal tool to support you.
Determining which trust to use in your estate plan is easier with the help of a skilled trusts attorney from Veliz & Associates, P.A. Here is a brief explanation of common trusts so you can learn which type works best for you.
You could create a revocable living trust during your lifetime. This trust document allows you to manage your assets over the course of your life, leave directions in the event of incapacitation, as well as specifying how your assets are distributed after death. The goal is to avoid probate court and ease the asset administration process for loved ones. One benefit of this type of trust is that you could periodically amend or even revoke it whenever you experience a major life change.
If you are looking for a trust that cannot be modified after it is created, you should consider an irrevocable trust. Once executed, this type of trust can only be modified under certain circumstances, such as a court order. It is a popular option for asset protection and tax planning benefits because it safeguards your wealth and property from creditors and lawsuits. However, you lose control over the assets, such as real estate, to the trustee.
A testamentary trust is drafted as part of a Will and only becomes effective after your death. This irrevocable trust is helpful if you have minor children because it protects assets until vulnerable beneficiaries are able to manage the money responsibly.
The purpose of a charitable trust is to support your philanthropic efforts. Whether your purpose is ending homelessness or supporting the arts and sciences, this type of trust is intended to help you support your causes through donations. While they are typically irrevocable and specify a specific period of payments, charitable trusts come with significant tax advantages.
Trusts are not a one-size-fits-all tool, and they can all do different things. Let us help you determine which type of trust to use in your estate plan and set your family up for the future. Our skilled estate planning attorneys are committed to understanding your family’s unique needs and streamlining the legal requirements.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
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