Trusts are a powerful estate-planning tool that can greatly reduce probate at death because they avoid the need to go through the court system. A trust is basically a financial arrangement where one person, called the “trustee,” manages property for someone else, sometimes called the “beneficiary.”
Trusts can be set up in many different ways to meet your needs. The key thing to know is that trust can take effect during your lifetime or at death. You might need the help of a Monroe trusts planning lawyer to decide which kind of trust is right for your situation. An estate planning lawyer is experienced in estate planning and trusts and can help you decide which one is right for your needs. They also handle other estate planning matters such as wills.
In this article, we will discuss some of the most common types of trusts in Monroe and how they may help you.
- Revocable living trust
Revocable living trust means that the trust’s creator (grantor) can change or revoke it as he or she pleases during his or her lifetime. This is called “revocable,” because the grantor can change or revoke the grantor’s wishes at any time. However, after the death of the grantor, a living trust becomes irrevocable, and it has to be carried out exactly as written in the document at the moment of death.
- Special needs trust or SNT
The special needs trust (also known as “special needs” or “special needs beneficiary”) is a type of trust that is used to help pay for the care and support of certain beneficiaries when the grantor(the settlor) is unable to do so. The main purpose of this kind of trust is to provide support for people with disabilities at times when they need financial help. A person can have more than one SNT in his or her life, but each should be different.
- A trust for minor children
A trust for minor children is a trust created under which a parent names a child as the beneficiary and sets up the terms of distribution after death. A child’s parents can also name other people as beneficiaries under this type of arrangement.
- Charitable trust
A charitable trust is a trust set up to benefit a charitable organization or purpose. A grantor can give a gift to a charitable organization so that the grantor receives a charitable income tax deduction.