What are the trusts for an estate plan?

Trusts are legal documents used in estate planning to manage the assets of an estate. A trust is an agreement between the grantor (the person who creates the trust) and the trustee (the person responsible for managing the trust) to hold the trust estate for the benefit of the beneficiaries (the people who will receive the benefit of the trust). When creating an estate plan, the grantor may create a variety of trusts in order to achieve their goals. The most common types of trusts used in estate planning include revocable living trusts, irrevocable trusts, and special needs trusts. A revocable living trust is a trust that allows the grantor to access the assets and modify the details of the trust as long as they are alive. This is the most common type of trust used in estate planning because it allows the grantor to manage the trust while they are alive and designate how their assets will be distributed after their death. An irrevocable trust is a trust that can’t be modified after it has been created. This type of trust is typically used to protect assets from being taxed after the grantor’s death. A special needs trust is a trust designed specifically for those with special needs or disabilities. This type of trust can be used to provide an extra layer of protection for the assets of the beneficiary, while still allowing them to receive the benefits of supplemental income. In summary, trusts are an important part of estate planning. A variety of different trusts can be used to achieve different goals, depending on the needs of the grantor.

Related FAQs

How do I amend or modify a trust?
What is a spendthrift trust?
What are the elements of a trust?
What is an irrevocable trust?
What is a living trust?
How do I terminate a trust?
What is a tax-free trust?
What is a family trust?
What is a trust?
Can I change the terms of a trust?

What are the trusts for an estate plan?

Related FAQs

Related Blog Posts