We want to know we did everything to help take care of our loved ones when we pass. Taking the time to build a thorough and thoughtful trust can help secure your legacy and provide for your family after you are gone. This blog will break down the five most popular kinds of trusts.
Revocable Living Trusts
A revocable living trust is set up so that the trustor, the owner of the trust, can edit and amend it during their lifetime. It is set up in a way that helps avoid entering the probate process since it is a lengthy and expensive process. This is a way to let the trustor enjoy the assets during their life and change the trust as they see fit before they pass.
An irrevocable trust works in the opposite way a revocable trust does. This is a trust that is set up but cannot be changed during the trustor's lifetime, nor can it be revoked after their passing. The assets listed in an irrevocable trust are also unable to be transferred back into the possession of the trustor. This type of trust is great because there is little to no estate tax placed on it.
As the name of this trust suggests, it is built so that the assets will be doled out to benefit a charity or non-profit organization. The trustor can set up a charitable trust in one of two ways. They can say they want all of their trust to benefit a charity or break it down further and have their trust split between their children, spouse, or other family members and still have a leftover remainder benefit charity.
Special Needs Trust
Building a special needs trust is a specialty at Thompson | Von Tungeln A P.C.. This form of trust aims to ensure a beneficiary dependent on government assistance can claim what is left for them in the trust without losing the help of government programs. The stipulation with this trust is that what is given to the beneficiary cannot duplicate the aid they are receiving from the government.
A blind trust is set up with the goal of avoiding actual or perceived conflict. The beneficiary has no power to see anything left to them in the trust. The trustor and the trustees are the only people allowed to see and know what is left in the trust.
For all of your trust building questions contact Thompson | Von Tungeln A.P.C. at (661) 945-5868