What are the trusts for an estate plan?

Trusts are an important part of an estate plan in Pennsylvania. A trust is a legal document that allows a person (the settlor or grantor) to transfer property to another person (the trustee) to manage it for the benefit of someone else (the beneficiary). Trusts come in many varieties, and enable a person to control the use and distribution of assets during their lifetime and after their death. The most common trust used in estate planning is a revocable living trust. In this type of trust, the settlor can change or cancel the trust at any time, and control how the assets held by the trust are managed. The settlor can also designate who will manage the trust and how the assets will be used. Another trust used in estate planning is an irrevocable trust. With this type of trust, once it is set up, the settlor can no longer change it. Instead, it must be administered according to the instructions in the trust document. This type of trust is often used for tax purposes and to protect assets from creditors. Estate plans also commonly include other types of trusts, such as charitable trusts, special needs trusts, and testamentary trusts. Charitable trusts are used to provide financial support to charities, while special needs trusts are used to provide for disabled individuals. Testamentary trusts are set up under the terms of a will, and help to protect the assets a person leaves behind for their beneficiaries.

Related FAQs

What is a trust distribution?
What is a healthcare power of attorney?
What is a living will?
How do I fund a trust?
How do I wind up an estate?
What are the tax implications of establishing a trust?
What is a trust account?
What is a will?
What are the benefits of establishing a trust?
How do I transfer real estate into a trust?

What are the trusts for an estate plan?

Related FAQs

Related Blog Posts