What is an inheritance trust?

An inheritance trust is an estate planning tool commonly used in Virginia. It is a legal relationship between a beneficiary and a trustor, whereby the trustor gives the beneficiary certain assets or property at their death. The trustor also appoints a trustee to manage the trust assets on behalf of the beneficiary. The inheritance trust is intended to provide financial protection to the beneficiary from mismanagement of assets. The trustee is responsible for investing, using, and distributing the trust assets according to the trustor’s wishes. The trustor can also designate conditions that must be met before assets can be distributed. In some cases, the terms of the inheritance trust may be used to avoid certain taxes, such as estate taxes, gift taxes, or capital gains taxes. Additionally, the beneficiary of the trust may be able to use funds for living expenses while financial resources last. The trustor may establish an inheritance trust in their will or living trust, or may create a separate trust document. The trust document will specify the trustor’s wishes and set up the conditions for the distribution of assets. The beneficiary of the trust will then be able to receive the assets that the trustor intended, in accordance with the terms of the trust.

Related FAQs

Should I include a trust or will in my estate plan?
How can I prepare for long term care expenses?
Should I hire a lawyer to help with my estate planning?
How can I ensure that my estate is distributed according to my wishes?
What estate planning documents must be witnessed?
What is a generation skipping trust and how does it work?
What rights do my heirs have to my estate?
How can I ensure that my pet is taken care of after my death?
What happens to my estate if I die intestate?
What should I do if I suspect an invalid will?

What is an inheritance trust?

Related FAQs

Related Blog Posts