You’re working on your estate plan, and something that you’re interested in is setting up a trust to pass on your assets to your loved ones. You want to make sure that they’re cared for and that your property has a good home after you pass away.
You’re not sure what kind of trust to use because there are several different people and entities that you’d like to give assets to. Fortunately, for any situation you have in mind, there is a trust that will help.
You’re right that there are many different kinds of trusts. Some that you may be interested in using include:
- Charitable remainder trusts, which allow your assets to be distributed to your favored charities, religious groups or other organizations.
- Life estate trusts, which allows your loved one or surviving spouse to stay in your primary residence until death. At that point, the property may be sold or donated by heirs of the estate.
- Educational trusts, which are designed to support heirs’ tuition as well as the cost of higher education.
- Special needs trusts, which help provide support for those with disabilities.
- Spendthrift trusts, which limit access to the funds in the trust to prevent excessive spending.
- Generation-skipping trusts, which provide grandchildren access to assets that their parents may not receive.
There are other forms of trusts as well. As someone who wants to protect your assets and create trusts for those you love, these are some wonderful options. Your attorney will be able to help you choose the specific trusts that would work well for your situation. Our website has more on trusts if you are interested in adding them to your estate plan.