Boise and Nampa’s estate planning attorney helps you achieve certain objectives through trusts
Boise and Nampa’s estate planning attorney recommends that estate owners take the time to understand different estate planning tools and options. Making the right decisions will safeguard them while alive and distribute their property, money, and other assets to their family and loved ones after passing away.
What are the different types of trusts?
- Revocable Trust- also called Living Trust
- Irrevocable Trust
- Charitable Trust
- Minor’s Trust
- Supplemental Needs Trust
Revocable trust- also called a Living Trust
It is also called a living trust and is used by individuals who want to protect themselves while alive and avoid probate in distributing their estate after passing away. The individual will name the trustees who will control the property, money, and other assets within the trust. The estate owner would probably work closely with the individual named to hold a power of attorney. Still, the property, money, and assets within a revocable trust can only be controlled by the individual who holds a power of attorney. Since the trust is revocable, the individual who created it can change, modify, or completely revoke it. It allows an individual to change their mind based on circumstances and laws.
Irrevocable trust
Once this trust is created and funded with trust assets, the individual who created it can no longer modify or change it. This trust type is typically used to protect the estate assets from creditors. Specific types of irrevocable trusts are utilized in Medicaid planning to help individuals qualify for the benefits. An irrevocable trust is also ideal when an individual wishes to avoid federal estate tax that could be applied to their estate. This is useful for an estate worth more than $22 million for married couples or $11 million for single people.
Charitable trust
As the name suggests, it is a trust designed for the purpose of charity. It is mostly used to reduce an individual’s estate to evade federal estate taxes. Charitable trusts identify a charity or charitable person for which the property, money, and assets within the trust will be used. They also offer opportunities for individuals to obtain tax exemptions for donations made to the trust.
Minor’s trust
A minor’s trust is designed to benefit an individual under the age of eighteen years. After attaining this age, the person is considered a legal adult, entitled under the law to receive any property, money, and assets held by the guardian for their benefit. However, many 18-year-olds do not have the experience or knowledge to handle large amounts of money, property, or assets. Besides, they may not have access to these funds to help them before adulthood.
Supplemental needs trust
It is designed to help individuals with disabilities or some type of handicap. Most times, a disabled or handicapped person qualifies for various governmental benefits and/or other programs to assist them. These benefits and programs usually have specified limitations on the types and amounts of assets the disabled individual can own and still qualify for the benefits or programs they receive. The trust is created and used in such a manner that the benefits and programs the individual is receiving are protected and will continue to be available.
Do I really need a trust?
Watch this video for more information: https://www.youtube.com/watch?v=RxdfTu3oJdo&t=1s
Work with Boise and Nampa’s best estate planning attorney
A trust attorney can help you with your estate planning or probate requirements. Create or review your estate plan with Boise and Nampa’s best estate planning attorney.
Jacobson & Jacobson Law Firm, since 1982, is committed to serving the Boise and Nampa, Idaho areas for your top Criminal Defense, Personal Injury, Business Law, Estate Planning, Family Law, Immigration Law, and Litigation needs. Contact us today to get started. For a free 30-minute consultation, book here: https://calendly.com/jfj-1