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

Trusts are an important part of estate planning law in Indiana. A trust is a legal document that is used to hold and manage assets for a beneficiary, which is the person who benefits from the trust. Trusts can be set up by individuals or families to protect their assets for their beneficiaries. There are several different types of trusts that can be set up in Indiana. The most common type of trust is a revocable living trust. This type of trust allows the creator to control how assets are distributed. The creator can also change or revoke the trust at any time. Another type of trust is an irrevocable trust. This type of trust is not able to be modified or revoked by the creator once it is set up. This type of trust is often used to protect assets from creditors or to reduce tax liability. A special needs trust is also an irrevocable trust that is used to provide financial support to someone with a disability. This type of trust can help ensure that a beneficiary is taken care of without disqualifying them from government benefits. Finally, a testamentary trust is a trust that is set up by a will or estate plan. This type of trust is not operational until after the death of the creator. After the creator has passed away, the trust is managed by the executor, who is the person responsible for managing the estate. In Indiana, trusts can be an important part of estate planning and can be used to protect and manage assets for the benefit of the creator and their beneficiaries. Each type of trust has different protections and regulations, so it is important to understand the details of each type before creating a trust.

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

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