Trusts
What is a trust?
A Trust is defined as a confidence placed in a person by making that person the nominal owner of property to be used for another’s benefit.
There are three main types of Trusts:
Living TrustsIt is known as a living trust because the person or persons establishing the trust are living at the time that the trust is created and funded. The living trust can be a very effective tool for transferring property to the control and use other persons (successor trustees) without having to pass through a Probate Court proceeding. Most clients want to avoid the Probate process because it takes time and requires the payment of fees that will be taken from the value of the Probate assets. These fees can easily be avoided by engaging in thoughtful estate planning before one’s death.
Irrevocable TrustsAn Irrevocable Trust can be used to avoid an estate tax liability that would otherwise be due at death.
Special Needs TrustA Special Needs Trust is used to create a fund to care for a disabled child or grandchild.