What are the trusts for an estate plan?

A trust is an important part of an estate plan in Washington. A trust is a legal entity created by a grantor, also known as a settlor, with the purpose of managing assets such as money or property. The grantor appoints a trustee – either an individual or institution – to manage and distribute the trust assets for the benefit of the trust beneficiaries. The terms of a trust are specified in a trust document, which is a written document that outlines the trust’s purpose, the assets it will include, the criteria for distributing assets, who will receive the assets, and other relevant information. There are several types of trusts that are used in estate planning in Washington. The most common are revocable living trusts, irrevocable trusts, irrevocable life insurance trusts, special needs trusts, pet trusts, charitable trusts, generation-skipping trusts, and dynasty trusts. A revocable living trust is a trust that allows the grantor to remain in control of the assets during their lifetime and provides for the transfer of trust assets to named beneficiaries upon the grantor’s death. An irrevocable trust is a trust that is created for the benefit of third parties and does not allow the grantor to make changes to the trust after it is created. An irrevocable life insurance trust is a trust that is used to help reduce estate taxes by taking ownership of life insurance policies. Special needs trusts provide for the care of individuals with disabilities. Pet trusts provide for the proper care of pets after the death of their owner. Charitable trusts can be used to give a gift to a charity. Generation-skipping trusts and dynasty trusts help preserve wealth for multiple generations. In summary, trusts are an important part of an estate plan in Washington. There are various types of trusts that can be used for various purposes, such as providing for the care of individuals with special needs or helping to reduce estate taxes.

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