Why should I consider creating a trust?
Trusts can be used for a multitude of reasons. They are often used to provide for loved ones as an integral part of an estate plan. Essentially, trusts are an additional tool in your hands and the hands of your attorney.
Are all trusts part of a Will?
No. Trusts can be both testamentary (that is, they are activated at the time of your death and are part of a well-drafted Will), or intervivos (that is, they are created independently from your Will). Trusts may also be revocable or irrevocable.
What are the different kinds of trusts?
- Marital trusts are often used in estate planning between husbands and wives to take full advantage of the unified gift and tax credit available.
- Special needs trusts are used to provide for the special needs of a child or other loved one who requires additional financial assistance to maintain his or her life, such as a child with a physical disability.
- Charitable trusts can be used for charitable purposes, such as charitable lead trusts or charitable remainder trusts.
- Trusts can be used as a holding tank for property, such as in a qualified personal residence trust.
- Trusts can also be used in connection with life insurance as a wealth-building tool for your beneficiaries. An irrevocable life insurance trust is an excellent estate planning document that can help to build and fund your estate.
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