What is an inheritance trust?

An inheritance trust is an estate planning tool used to protect inherited assets from being taxed or misused. In Wyoming, inheritance trusts are set up to ensure that assets that are passed from one generation to the next are protected from creditors and taxes. Assets that are placed in an inheritance trust are managed and distributed according to the wishes of the grantor, or the person establishing the trust. The grantor can designate how and when trust assets can be used, by whom, and for what purpose. For example, the grantor could set up the trust so that it provides income for a beneficiary until a certain age, or allows assets to be used for a certain purpose, such as education or travel. Inheritance trusts are also used to delay or reduce estate taxes, as trust assets are not subject to taxation until they are distributed to a beneficiary. This means that assets can remain in the trust and continue to grow while avoiding certain taxes. In Wyoming, inheritance trusts are typically established by an estate planning attorney. The attorney will help the grantor create the trust and establish the rules for how the assets should be managed and distributed. The attorney will also help ensure that the trust is legally enforceable and adheres to all applicable state laws.

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What is an inheritance trust?

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