A trust is a fiduciary arrangement that gives a third party, called a trustee, the ability to hold assets on behalf of a beneficiary. Trusts are flexible instruments that can be arranged in many ways and can specify exactly how and when your assets transfer to beneficiaries. In this article, we examine four popular types of trusts.
Revocable Living Trusts
A revocable living trust is a written document that determines how your assets will be handled after your death. A revocable living trust is unique in that you can amend or cancel it at any time. This adds a level of flexibility to revocable living trusts that isn’t available with some other types of trusts.
Special Needs Trusts
A special needs trust is a type of trust that allows you to transfer property to the trust for the benefit of a person with special needs. Generally, in order to remain eligible for certain government benefits, people with special needs may not exceed certain asset and income limits. With a special needs trust, you can legally shield assets in order to ensure that your loved one with special needs can continue to receive government benefits.
Testamentary Trusts
A testamentary trust is a trust that is built into the terms of a last will and testament. Many people use testamentary trusts to plan for inheritances of minor children or to make sure that they can control how certain assets are used after death. One downside to creating a testamentary trust, however, is that it must be administered through the probate process, thereby eliminating one of the biggest advantages of using a trust in the first place—the avoidance of probate.
Pet Trusts
Finally, in addition to providing for your children with a trust, you can make arrangements to ensure that your pets are cared for after you’re gone. Through a pet trust, you can set aside funds to be used to care for your pets after your death. Like other types of trusts, a pet trust allows you to name a trustee to ensure that trust funds are distributed in accordance with the terms of the trust.
Contact a Florida and New York Estate Planning Attorney
In order to determine whether a trust is the right choice for your estate plan, you should contact an experienced Florida and New York estate planning attorney for assistance. At the Law Office of Angela Siegel, attorney Angela Siegel provides comprehensive estate planning services to residents of Florida and New York. When you contact Angela Siegel, she will guide you through the estate planning process and take the necessary steps to ensure that you and your family are prepared for life’s twists and turns. So, if you are ready to take the steps necessary to protect you and your family, please contact us today to schedule a free initial consultation.