A trust is a legal arrangement between a grantor and trustee that benefits the grantor by protecting their assets from misuse, estate taxes, probate and disputes.
There are several popular kinds of trusts. Here is what you should know:
1. Charitable trusts
Could your assets fund a good cause? Are you part of a group that fights for a unified goal? Do you attend an organization that seeks to help others? A charitable trust could be used to send funds to private organizations or charities after you pass away.
2. Pet trusts
Do you have a pet that you expect will outlive you? Do you worry about how your pet will be cared for after you pass away? Does your pet need special care? You can set up a pet trust that will fund the care of your pet.
3. Spendthrift trusts
Does a beneficiary have a bad spending habit? Do you want to provide a beneficiary with a sizable estate but worry about them wasting their inheritance? You can limit a beneficiary’s access to funds with a spendthrift trust so they do not make poor investments.
4. Generation-skipping trusts
Do you have grandchildren? Do you want to help your grandchildren in the future? A generation-skipping trust can be used to protect funds from estate taxes so that beneficiaries can inherit the full amount of an estate.
5. Special needs trusts
Does a beneficiary receive special needs benefits or supplemental income that are crucial to their living? If they receive an inheritance, they may be at risk of losing their benefits. A special needs trust can limit access to funds so a beneficiary can continue receiving medical benefits.
Call Quinn Law Firm at 814-833-2222 to learn more about your estate planning options.
