Learn About the Different Types of Trusts When Implemting Your Estate Planning/ Wills & Trusts

 Posted on June 09, 2016 in Taxation Law

If you're considering estate planning/ wills & trusts, you may want to consider the different types of trusts available for estate planning purposes. There are constructive trusts, charitable trusts, asset protection trusts and revocable and irrevocable trusts. Your financial situation, along with a host of other circumstances, will dictate the best trust for you.

Irrevocable and Revocable Trust

A revocable trust is a trust that can be nullified or altered during the course of the trust maker's life. This trust is established to allow the trust maker to add property title to the trust and naming himself as the trustee. The trust maker can remove the property from the trust whenever he chooses.

An irrovocable trust is one that can't be nullified or changed after the trust is established. Also, the trust maker must appoint someone as trustee.

Asset Protection Trust

An individual's assets are guarded from creditor claims in an asset protection trust, usually held outside of the U.S. You can establish this trust so that assets that are not distributed can revert back to the trust maker once the trust has ended, barring any risk from creditor's claims.

Charitable Trusts

A charitable trust is established so that assets from the trust maker are transferred to a charity or the general public. People set up charity trust to avoid or lower gift and estate taxes, and offer the trust maker a number of other benefits.

For more information on establishing trusts or other forms of estate planning, contact us to set up a consultation.