Individuals who embark on an estate plan can benefit from establishing trusts. There are many different types of trusts that can be created to accomplish different objectives. Creating a trust can provide advantages during your lifetime and to your heirs after your death. When you set up a trust, you (the grantor) transfer assets to a separate legal entity that holds your assets and disburses them according to your objectives. Because you determine who will serve as trustee, certain trusts let you continue to maintain control over your assets even after you have transferred them to the trust. Which type or types of trusts you decide to implement are dependent on your particular facts.
Trusts can accomplish many important estate-planning goals. They can ensure the sound management of your assets after your death; they can protect your property from creditors; they can minimize or reduce probate; they can guarantee that your estate passes to your heirs exactly as you wish; they can provide funding for multiple generations; they can fulfill your charitable goals and provide income tax benefits, and most importantly, they can reduce estate taxes.
Different types of trusts are designed to accomplish a variety of lifetime and after-death objectives. Some of these include Living Trusts, Charitable Lead or Remainder Trusts, Qualified Terminable Interest Trusts, Credit Shelter Trusts, Qualified Personal Residence Trusts, Marital Deduction Trusts, Generation Skipping Trusts, Grantor Retained Annuity Trusts, Intentionally Defective Grantor Trusts, Dynasty Trusts, Supplemental Needs Trusts, Insurance Trusts , and the list continues.
Depending on your family situation, your wealth, your health, and your age, a plan can be implemented which utilizes a combination of these trusts to best integrate your lifetime and testamentary objectives and minimize estate taxes.
If you have any questions regarding this matter or any other estate planning techniques, please contact a Maurice Kassimir & Associates, P.C. Trusts & Estates attorney or e-mail us: