During the estate planning process, attorneys may recommend placing your property in one or more trusts. A trust is a legal device that will protect assets from creditors, minimize taxes, and simplify passing property to future generations. Trusts such as the ones below are among the numerous types of trusts to consider in handling your assets.   

Various Types of Trusts for Managing Assets

1. Testamentary Trusts

Testamentary trusts are incorporated into your will and take effect when you pass away. These trusts are useful in gifting property to children, grandchildren, organizations, and charities. If you create revocable testamentary trusts, you can change them at any time. However, if you create irrevocable trusts, you cannot modify them or take assets out of them once they finish transferring to the trust.  

2. Special Needs Trusts

If you have a child or a loved one with a disability, creating a special needs trust may be a crucial part of your estate plan. By naming your loved one as the trust beneficiary, the trust assets are protected for them, allowing them to retain certain government benefits. They can use assets in this trust for a wide range of purposes, including education, electronic equipment, vacations, entertainment, and vehicle purchases.  

3. Marital Trusts

Another type of trust your attorney may recommend, marital trusts, also known as “A Trusts,” allow each spouse to create a trust that benefits the other. If you and your spouse create these trusts and you pass away first, the trust assets and income pass to your surviving spouse. If your spouse passes away first, the trust proceeds pass to you. The surviving spouse does not have to pay estate tax on the trust assets. However, any estate tax liability that remains when the second spouse passes away becomes the responsibility of the heirs.

Receiving advice from an experienced estate planning attorney will help you decide how to accomplish your goals. The experienced attorneys at Rutherford Law Office offer the guidance you need in making trust creation and funding decisions. Their listening skills, attention to detail, and compassionate delivery of top-quality legal services instill confidence and peace of mind in their clients. Call (740) 775-7434 to make an appointment or visit their website now for more information.