When creating an estate plan the first document that most of us think about is a will. However, there are other estate planning tools that may prove essential in helping you reach your overall estate planning goals. One such document is the trust.
When you create a trust and transfer assets to it those assets are held in the trust for the benefit of another person referred to as the beneficiary. The assets of the trust are managed by someone you appoint as the trustee. The terms of the trust agreement will govern how the trustee is to manage the trust assets, including the circumstances under which distributions may be made from the trust to the beneficiary.
The Different Types of Trusts
There are a number of different types of trusts and several ways to categorize them. For example, you can create and fund your trust either during your lifetime, or through your will you can direct the creation of a trust upon your death. Estate Attorneys in New Orleans will be able to explain to you the trust options available to you and the best options for your situation.
Special Needs Trust
Special needs trusts (SNT) are commonly set up by parents or grandparents of children who have a disability such as Down's syndrome or cerebral palsy, to ensure that adequate funds will be available for their specialized needs well into the future.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
Suppose you want to set up a scholarship fund at the local college or give money to a foundation to use for medical research. A charitable trust is a way to give assets to a cause you believe in and at the same time reduce your estate taxes. Estate Attorneys in New Orleans will be able to explain to you how charitable trusts work and how your estate taxes will be affected.
Minor Children Trust
Whether it is during your lifetime or after you pass away, you can make gifts to you minors by transferring the money to a trust. The trust can be for a specific reason such as for the minor's education, or for general expenses. You can include in the trust terms that the trust will end when the beneficiaries reach the age of majority, or you can provide that trust assets will be distributed at various intervals throughout the lives of the beneficiaries.
Spendthrift Trust
If you are concerned that a loved one would recklessly spend any money you give him or her, consider setting up a spendthrift trust for that person. With a spendthrift trust you would be able to give money or other assets to someone without giving that person control over it. Thus, the beneficiary could not be able to spend it all on unwise purchases and the property would not be subject to claims by debt collectors.
In addition to special needs trusts, charitable trusts, minor trusts and spendthrift trusts, there are other types of trusts that may fit your needs. To learn more about trusts and how they may work for you, discuss your planning goals with experienced Estate Attorneys in New Orleans at Barrios Kingsdorf & Casteix LLP.
When you create a trust and transfer assets to it those assets are held in the trust for the benefit of another person referred to as the beneficiary. The assets of the trust are managed by someone you appoint as the trustee. The terms of the trust agreement will govern how the trustee is to manage the trust assets, including the circumstances under which distributions may be made from the trust to the beneficiary.
The Different Types of Trusts
There are a number of different types of trusts and several ways to categorize them. For example, you can create and fund your trust either during your lifetime, or through your will you can direct the creation of a trust upon your death. Estate Attorneys in New Orleans will be able to explain to you the trust options available to you and the best options for your situation.
Special Needs Trust
Special needs trusts (SNT) are commonly set up by parents or grandparents of children who have a disability such as Down's syndrome or cerebral palsy, to ensure that adequate funds will be available for their specialized needs well into the future.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
Suppose you want to set up a scholarship fund at the local college or give money to a foundation to use for medical research. A charitable trust is a way to give assets to a cause you believe in and at the same time reduce your estate taxes. Estate Attorneys in New Orleans will be able to explain to you how charitable trusts work and how your estate taxes will be affected.
Minor Children Trust
Whether it is during your lifetime or after you pass away, you can make gifts to you minors by transferring the money to a trust. The trust can be for a specific reason such as for the minor's education, or for general expenses. You can include in the trust terms that the trust will end when the beneficiaries reach the age of majority, or you can provide that trust assets will be distributed at various intervals throughout the lives of the beneficiaries.
Spendthrift Trust
If you are concerned that a loved one would recklessly spend any money you give him or her, consider setting up a spendthrift trust for that person. With a spendthrift trust you would be able to give money or other assets to someone without giving that person control over it. Thus, the beneficiary could not be able to spend it all on unwise purchases and the property would not be subject to claims by debt collectors.
In addition to special needs trusts, charitable trusts, minor trusts and spendthrift trusts, there are other types of trusts that may fit your needs. To learn more about trusts and how they may work for you, discuss your planning goals with experienced Estate Attorneys in New Orleans at Barrios Kingsdorf & Casteix LLP.
About the Author:
The New Orleans Probate Administration Attorneys at Barrios Kingsdorf & Casteix, L.L.P. can help with any of your needs. Schedule an appointment with the experienced Estate Attorneys in New Orleans today for assistance.
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