What are the different types of trusts and how do they work?

Trusts are a powerful tool used in estate planning law. In Idaho, there are several different types of trusts that can be created to help protect assets and manage a person’s estate. A revocable living trust is a trust created during a person’s lifetime. It is revocable, meaning it can be modified or terminated at any time. This type of trust can be used to manage assets, reduce taxes, and avoid probate. After the trust creator passes away, it becomes irrevocable and the assets are managed in accordance with the provisions of the trust. An irrevocable trust is a trust that can no longer be changed or revoked. This type of trust is usually used to protect assets and reduce taxes. They can also be used to provide for the care of the creator’s dependents, such as children or a spouse. A special needs trust is a trust set up to provide for the care and needs of a person with a physical or mental disability. This type of trust can help protect assets from being used to pay for services the disabled person may need, such as medical care or housing. A charitable trust is a trust used to provide financial support to a charitable organization. Charitable trusts can provide for the donation of assets or income to a charity. A testamentary trust is created as part of a person’s will. This type of trust can be used to manage assets, provide for a beneficiary, and help reduce taxes. Overall, trusts are complex documents that should be created with the help of an experienced estate planning attorney. They can provide a great way to protect assets, manage them during life and after death, provide for those left behind, and reduce taxes.

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What are the different types of trusts and how do they work?

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