What do you know about your options for estate planning trusts?

On Behalf of | Apr 5, 2021 | Estate Planning

The more you learn about estate planning, the more you understand the different documents and options available. Have you explored your options for a trust? 

CNN Money breaks down various legal entities used to protect one’s estate. Learn which type suits your needs and estate most favorably. 

Generation-skipping trust

Do you have grandchildren whom you want to include in your estate? If so, consider implementing a generation-skipping trust. The entity lets you shift sizable sums of untaxed funds to beneficiaries at least two generations younger than you. 

Irrevocable trust

As a living trust, an irrevocable trust represents assets you no longer own, nor may you alter the trust without a beneficiary’s permission. One advantage of this trust is even if its assets appreciate, they do not qualify for estate tax.  

Revocable trust

Another living trust example, a revocable trust keeps you in full control of the trust’s assets. You may also alter the entity’s terms as you see fit. 

Qualified terminable interest property trust

You could worry that your family’s many divorces, marriages and combined families may muddle your estate. If so, consider establishing a qualified terminable interest property trust. This trust lets you direct your assets to specific beneficiaries. Your surviving marital partner receives the initial trust income. When she or he dies, your specified beneficiaries receive the remaining income. 

Qualified personal residence trust

If you expect your home or another real estate property to appreciate and want to extract its value from your estate, consider placing it in a qualified personal residence trust. 

To protect your estate and ensure your intended heirs receive their assets, you must use the right trust. Take steps to give yourself and your loved ones peace of mind.