What everyone should know about trusts
Nearly everyone builds up some sort of assets during their lifetime. You even have some sort of an idea about how you want to divide your estate after you pass. The question is, “How can you ensure your family and friends get the inheritance you wish for them?”
One of the possible options for distributing your estate is through a trust. Trusts can ensure your assets are properly transferred to your heirs. There’s more you should know about this option:
There are many different types of trusts
Trusts make it easier for your heirs to gain their inheritance. There are two main types of trusts to consider: Revocable and irrevocable. Revocable trusts remain in your name until you die, while irrevocable trusts do not. Consequently, revocable trusts may be susceptible to creditors’ claims, while an irrevocable trust is not.
Within those broad types of trusts, there are various sub-types you might consider. Here are are several you might find useful:
- Living Trusts
- Joint Trusts
- Charitable Trusts
- AB Trusts
- Insurance Trusts
- Blind Trusts
- Special Needs Trusts
- Spendthrift Trusts
- Asset Protection Trusts
Don’t let the list intimidate you. Many people go for living trusts because it is the easiest at the time. People choose different trusts based on the ages of their heirs, their marital status, how big an estate is, their ethics and their goals. In general, trusts can be as individual as the people who create them.
If you are considering making a trust then you may need to explore your options carefully. Experienced legal guidance can help ensure you pick the right trust for your estate.