There are so many different types of trusts available that it can be hard to decide which option is best for you. The trust you choose should help you achieve your estate planning goals while protecting your assets and loved ones. Our team at Crain & Wooley has the answers you need to make the right choice.
If you need help preparing your trust, contact our Dallas-Fort Worth estate planning attorneys today at (972) 560-6288 to schedule a consultation!
A revocable trust is a trust that can be changed or voided for any reason, at any time, as long as the grantor is still living and deemed mentally competent. The grantor is the individual whose assets are put into the trust / the person who created the trust. The grantor may also be referred to as the settlor, trust maker, or trustor.
Unlike a revocable trust, an irrevocable trust cannot be changed without all of the beneficiaries consenting first. Since irrevocable trusts can't be modified, it may seem that they are never a good idea, but they can be beneficial in certain instances. It is best to speak with an experienced estate planning attorney to determine if an irrevocable trust is right for your unique circumstances.
Asset Protection Trusts
Asset protection trusts are another way to protect your assets from creditors. This is the most common way individuals protect assets when they are concerned about judgments or any other threats against their estate.
A charitable trust can be created to benefit a specific charitable organization. This is considered an irrevocable trust that offers some tax benefits. When setting up a charitable trust, you would appoint an organization to be the trustee.
An insurance trust is another form of an irrevocable trust. It can be established with only an insurance policy as an asset. This is a great way to avoid estate tax on any money that comes out of a policy when you pass away. It’s also an efficient way to ensure that your estate will be passed onto your beneficiaries.
Special Needs Trusts
Special needs trusts are created to benefit a loved one with special needs that keeps them from earning a living / maintaining full-time employment. Creating a special needs trust is a great way to provide financial support without jeopardizing any eligibility needed for government aid, such as Social Security Income or Medicaid.
A blind trust is a form of a living trust where grantors and beneficiaries have little to no prior knowledge about any of the assets within the trust. This is a great option for those who anticipate conflicts of interest. You would ultimately have full discretion over all the assets and distribution.
Which Trust Is Right for Me?
Trusts have many benefits, such as avoiding probate, the reduction of taxes, and more. However, choosing which trust is right for you is not an easy task. Thankfully, you don’t have to go through the estate planning process alone. Our team at Crain & Wooley has the skills, knowledge, and experience needed to help you with your unique situation. We are committed to transparency, integrity, and compassion in all of the estate planning cases we handle for clients, so you can rest assured that your case is in capable hands.
Contact us today at (972) 560-6288 to schedule a consultation!