Do I Need To Have More Than One Trust?
Most people don’t need to have more than one trust, but sometimes it’s recommended. In those cases, they’ll create an irrevocable trust, if they want to protect their assets from creditors. If they’re in a field where they might have the risk of their assets being taken by creditors, they might want to put some assets into an area local trust. If they’re quite wealthy, then they can put assets into a local trust. Sometimes, it’s called a dynasty trust, where those assets are maintained for generations.
It can be protected from creditors and it can be written so that they’re not subject to estate taxes, while still giving the children and grandchildren the power to benefit by using those assets. They don’t have a right to receive it outright, but the children have the full benefit of the trust. It is protected from creditors, spousal orders, and estate taxes.
What Are The Most Common Type Of Trusts That Are Used And What Do They Do?
There are revocable, irrevocable, and dynasty trusts. You can make contributions to these trusts for the children from the day they’re born and continue to make contributions so that when they reach a certain age, you have assets that will pay their college tuition. Sometimes, those trusts will terminate at that point or they can continue on for the benefit of grandchildren and beyond. An added benefit can be that they are saving estate taxes, as well as providing for the future benefit of their descendants.
Does A Trust Always Need To Be Part Of My Estate Plan?
In at least 80 percent of my practice, my clients will need a trust.
Will A Trust Always Protect My Assets From Creditors?
A revocable trust will not be protected from creditors. Only if you create an irrevocable trust that is out of your control will those assets be protected. You could be a beneficiary of that trust but it would be the provisions which really control how those assets are distributed in the hands of the trustee. There are spendthrift provisions, which will protect the assets in the trust from creditors as long as the beneficiaries don’t have an unlimited right to withdraw.
Do I Lose All Control Over My Assets If I Put Them Into An Irrevocable Trust?
You have trust protectors, whom you would hope would listen to you and do certain things that would be for your benefit. You can have some degree of implied control.
Are Special Types Of Trusts Better For Children With Substance Abuse Problems Etc.?
You can create trust when there is an addiction or a disability. You could have a special needs trust. If they are eligible for benefits from the government, the special needs trusts would provide only for those things that the child would need over and above what the governmental benefits will provide. With regard to children who may be suffering from an addiction, you can have a trust that will benefit those children but will be doled out only under certain circumstances.
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