What is an inheritance trust?

An inheritance trust is a type of estate planning law tool used in Washington state to plan for the distribution of assets and property after the death of an individual. In an inheritance trust, the person creating the trust (known as the settlor or grantor) transfers money or assets to another party (known as the trustee) to hold and manage. The trustee is then responsible for managing the trust assets in accordance with the terms of the trust document and distributing those assets to the beneficiaries named in the trust. In an inheritance trust, the settlor has the ability to specify the rules for how their assets should be distributed after their death. For example, they can name specific people who have an interest in the trust, specify when and how the assets can be distributed, and name a successor trustee to take over if the original trustee can’t fulfill their duties. With an inheritance trust, the settlor also has the ability to determine who pays taxes and manages the trust income, as well as how much access beneficiaries have to the trust funds. The biggest benefit of an inheritance trust is that it can help protect the settlor’s assets from high estate taxes and probate costs. An inheritance trust also allows the settlor to set up rules that ensure their assets are distributed the way they want after their death, bypassing the legal process of probate court.

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What is an inheritance trust?

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