One of the most popular forms of Estate Planning is through utilizing Trusts. There are many different types of Trusts, and they all serve unique purposes. It is common for one person to have different Trusts for different needs.
Estate Planning is the process of working with a lawyer to create a legally binding plan for what will happen to your belongings and property (known as your estate) and your remaining money (known as your assets) after you pass away. If you do not make these decisions in an Estate Plan, they will be made for you by a Judge in probate court.
Estate Planning often begins with creating a Will, which dictates what will happen to your estate in probate. However, your assets can also be placed into a Trust. A Trust allows you to continually fund an account throughout your entire life, rather than just taking what is left at the end. Even more importantly, Trusts skip probate entirely. The assets you place within them are automatically transferred to your chosen beneficiaries at the moment of your death. It is simple and protected.
Here are four of the many different types of Trusts to consider:
Revocable Trust
The most common form of Trust, a Revocable Trust (sometimes called a Living Trust) allows you to make any changes you want to it while you are alive. If you need to remove some of the assets or you want to change your designated beneficiary, you can. When you pass away, the Trust becomes locked and unchangeable.
Irrevocable Trust
This Trust is so named because the terms of the Trust become locked after you create it. While you can continue to fund it, you cannot change anything about it in any capacity after it is created. Irrevocable Trusts are not to be taken lightly.
Charitable Trust
A Charitable Trust is set up to be given to a charitable organization at the moment of your death, instead of a loved one or a single individual. There are many different ways to construct a Charitable Trust depending on how much you want to give and how often you would like it to be distributed.
Special Needs Trust
A Special Needs Trust is created to protect the financial life of a loved one with special needs who would not be able to financially provide for themselves. It can be catered to the individual needs of your loved one.
How To Get Started
See something you like? These are just the tip of the Trust iceberg. To get started creating an Estate Plan that works for you, contact Schlegel Livingston, LLC today! We believe in helping you through life’s most important moments.
Schlegel Livingston LLC
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