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TRUSTS |
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Trusts are estate-planning tools that can supplement Wills, help in avoiding probate and can also help manage property during ones lifetime. A trust manages the distribution of a person's property by transferring its benefits and obligations to different people. Maintaining assets in a trust often makes it easier to minimize taxes and leave a larger inheritance. A trust is also a way to provide a steady income to the trust beneficiary over time (as opposed to distribution in a lump sum), thus reducing the beneficiary's tax burden, allowing the trust to grow through investment, and keeping assets free from creditors of the trust beneficiary. Trusts can also be established for the benefit of charitable organizations.
Types of Trusts Revocable -Used to manage property during lifetime and avoids probate on death -Can be revoked during lifetime so long as Grantor is mentally capable Irrevocable -Used for estate and gift planning -Most often used to purchase and hold life insurance Testamentary -Created under an individuals Will -Used for estate planning Charitable -Charitable Remainder -Grantor and spouse retain current income stream -Can be used to create current income tax deduction for remainder interest -Charitable Lead -Charity receives current income stream -Grantor receives income tax deduction and remainder interest on termination |
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The Law Offices of Dale S. Davidson, LLC Copyright 2011 |
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