Have you ever considered using trusts as part of your estate planning toolkit? They can be quite effective tools, although you generally need professional help in setting them up. Perhaps it’s time to seek out an estate planning attorney Anthem AZ.
Using Trusts for Estate Planning
A trust is a legally binding contract by which assets and property are held by a qualified institution or party so that your wishes regarding the disposition of your valuables can be assured if you are incapable or deceased. there is a whole host of possible reasons to use trusts, including:
- To provide for charitable giving
- To protect beneficiaries from mismanaging wealth
- To avoid certain tax pitfalls
- To protect assets from creditors
- To manage unique asset types such as timber farms or mineral interests
- To hold insurance policies, to name a few.
Once you realize that trusts are powerful and versatile constructs, you may become tuned in to how they may be beneficial to you and your family. Because of thier legal status and potential complexity, most folks rely on legal help when getting a trust set up.
Types of Trusts
There are many types of trusts, all of which are generated for particular purposes. Some of the common types include:
- Living trusts
- Charitable trusts
- Special-needs trusts
- Asset-protection trusts
- Testamentary trusts, and more
Additionally, trusts are typically divided into two main categories: revokable and irrevokable.
Are Trusts Only for the Wealthy?
Many folks are under the impression that trusts are only for the wealthy. Names like John D. Rockefeller or Bill Gates may come to mind. The reality is that many common folks can benefit from them as well. If you are a single mom, a millennial, in a domestic partnership, or married with kids, a trust can be helpful to you as well.