Trusts & Estate Planning
What is a trust?
Most Americans in today’s society have a wrong understanding of whom and what trusts are used for. Many are under the mistaken impression that trusts are only used by rich multi-millionaires with who wish to leave a large fund behind for their children. A Trust administration is the process of distributing the property and the estate of a deceased person, in accordance with the decedent’s Trust. This process includes the transfer of assets and property. A Trust created under the direction of an experienced attorney can save family members from disputes and court proceedings, after the passing of a loved one.
The following are types of trusts that may be useful in estate planning:
- Minor’s Trust- A Trust for minors is a Trust that leaves estate in their name but is managed by a trustee, until the minor reaches a certain age. These trusts are also used to benefit the minor financially during their childhood.
- Special Needs Trust- A special needs trust (also known as a “Supplemental Needs Trust”) is a specialized legal document which enables individuals with disabilities that receive government benefits to inherit money and property from loved ones, without being disqualified from the government benefits they already receive.
- Marital Trust- A marital trust (also known as an “A-Trust”) is sometimes used by married couples to protect their property and to avoid taxes. A marital trust protects estate property from another spouse. For example, if a wife with a grown child passes away she may allowed to let her ex husband stay in her property, but ensure that ultimately have thr property be passed on to her child once he passes away as well. Married couples can also use this trust for tax exemption purposes.
- Revocable Living Trust- A revocable trust is can be altered or canceled at anytime depending on the grantor. It is used to avoid probate but is still a taxable estate.
- Irrevocable Life Insurance Trust- This form of trust is used to move an individual’s life insurance proceeds out of their estate in order to avoid estate taxes.
- Spendthrift Trusts- This trust is established to help beneficiaries use their assets wisely by giving responsibility to a trustee.
Trust and estate planning can get quite complicated without the help of an experienced advocate. The knowledgeable attorneys at the Law Offices of Savin & Bursk can help you assess your finances and goals, and determine the best estate planning tools to preserve your legacy and wealth. Call for a free consultation today.