When making an estate plan, you have the options to draft a will, assign a power of attorney, executor of the estate or child guardian and make plans for your future health care. That is a lot to consider. And, you may want to consider drafting one more legal document – a trust.
A trust allows you to arrange the management of your assets with a person called a trustee. The trustee has a right and obligation to hold, maintain and distribute your assets to beneficiaries when you pass away. A trust may sound a lot like a will. However, there are many benefits to adding a trust to your estate plan. Here is what you should know:
How does a trust benefit your estate?
The main intent of a trust is to protect your legacy. Unlike a will, the right type of trust can be used to protect your estate from probate, debt collectors, estate taxes and disputes. You can also make a trust to control how your assets are distributed and invested.
What are the different kinds of trusts?
There are several types of trusts you can add to your estate plan. The type of trust you add to your estate may depend on how you want to manage your assets.
For example, you can create a generation-skipping trust to greatly reduce estate taxes by passing assets down to a younger generation. If you wish to encourage beneficiaries to achieve certain goals, such as going to college, you may consider drafting an incentive trust.
If you want to learn more about the different kinds of trusts you can draft, you can reach out for legal guidance and discuss your options. Contact Quinn Law Firm at 814-833-2222 to begin planning your estate.
