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 several different types of trusts each with different features and different financial benefits. Estate Attorneys in New Orleans will be able to let you know which type of trust is appropriate for your needs.
Special Needs Trust
If, for example, you are concerned about the future of your child who has Down's Syndrome, autism, cerebral palsy, or some other severe and persistent disability, Estate Attorneys in New Orleans will explain how a Special Needs Trust (SNT) may be a way to give you peace of mind.
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
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
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 several different types of trusts each with different features and different financial benefits. Estate Attorneys in New Orleans will be able to let you know which type of trust is appropriate for your needs.
Special Needs Trust
If, for example, you are concerned about the future of your child who has Down's Syndrome, autism, cerebral palsy, or some other severe and persistent disability, Estate Attorneys in New Orleans will explain how a Special Needs Trust (SNT) may be a way to give you peace of mind.
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
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
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 attorneys at Barrios Kingsdorf & Casteix, L.L.P. will help you with all of your probate problems. Schedule an appointment with the experienced New Orleans estate lawyers today for assistance.
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