Special Trusts and Their Unique Benefits
Although the primary purpose of a trust is to manage property and assets, it can also accomplish a number of other objectives. For example, a trust may be created with the purpose of minimizing taxes, providing funds to a charitable organization or ensuring a beneficiary is not disqualified from receiving government benefits in the future.
The following are some different types of special trusts available through the estate planning process:
- Totten trust: This is a basic form of a trust, and its only main requirement is to title the account with the names of both the trustee and the beneficiary. Upon the trustee’s death, all of the funds automatically go to the beneficiary.
- Revocable trust: One of the major benefits of a revocable trust is that the trust maker may continue to make adjustments over time. An asset manager ensures that the trust makers’ wishes are carried out properly. This is often both faster and more private than a traditional will, and it may completely bypass the probate process.
- Charitable trust: A charitable trust is established with the intention of benefitting a particular charity. Most commonly, this form of trust is chosen as part of the estate plan to decrease estate and gift taxes.
- Spendthrift trust: A spendthrift trust includes a special provision that prevents the beneficiary from wasting assets by limiting the distribution of trust funds. Most commonly, the funds are distributed over a predetermined amount of time.
- Special needs trust: If you provide assets and property to a loved one in a special needs trust, that person may still be eligible to receive Social Security Disability and Medicaid benefits.
A trust can be a valuable financial planning asset for both yourself and your loved ones. For more information on which type of trust is best suited for you and your family, contact an experienced Florida estate planning lawyer with the Charles Law Offices.