What is an inheritance trust?

An inheritance trust, also known as a trust fund, is a legal tool used in South Carolina wills and probate law. It is a way to protect inherited assets from creditors, legal claims and tax liability. An inheritance trust allows an individual to transfer personal property, real estate, or financial assets to a trust which is managed by a trustee. The trustee holds the assets in the trust for the benefit of a designated beneficiary. The trust usually has specific instructions about how and when the beneficiary should receive the assets. Inheritance trusts come in a variety of forms, including revocable and irrevocable trusts. A revocable trust gives the grantor, or trust creator, the right to alter or revoke the trust during their lifetime. An irrevocable trust, on the other hand, cannot be changed or revoked once it has been established. Inheritance trusts also can be tailored to meet specific needs, such as special needs trusts and life insurance trusts. Inheritance trusts are a popular way to distribute wealth in South Carolina, and can be an effective tool to ensure that assets are passed on to the desired beneficiary in the most efficient way possible.

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What is an inheritance trust?

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