When creating an estate plan the first document that most of us think about is a will. However, there are other estate planning tools that may prove essential in helping you reach your overall estate planning goals. One such document is the trust.
When you create a trust and transfer assets to it those assets are held in the trust for the benefit of another person referred to as the beneficiary. The assets of the trust are managed by someone you appoint as the trustee. The terms of the trust agreement will govern how the trustee is to manage the trust assets, including the circumstances under which distributions may be made from the trust to the beneficiary.
Types of Trusts
Trusts can be set up to provide for loved ones who have special issues, to provide for minors, to provide for a cause that is important to you, or for a number of other personal or financial reasons. In order for a trust be effective it is important to work with Estate Attorneys in New Orleans who will set up your trust according to legal requirements.
Special Needs Trust
If, for example, you are concerned about the future of your child who has Down's Syndrome, autism, cerebral palsy, or some other severe and persistent disability, Estate Attorneys in New Orleans will explain how a Special Needs Trust (SNT) may be a way to give you peace of mind.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
A charitable trust allows you to give property to a charitable organization. There are three common types of charitable trusts: charitable remainder trusts, charitable lead trusts and pooled income trusts. Estate Attorneys in New Orleans will be able to advise you on the appropriate type of charitable trust for you, and will also explain to you the tax benefits of using a charitable trust as a way to give assets to your favorite charitable organizations.
Minor Children Trust
Whether it is during your lifetime or after you pass away, you can make gifts to you minors by transferring the money to a trust. The trust can be for a specific reason such as for the minor's education, or for general expenses. You can include in the trust terms that the trust will end when the beneficiaries reach the age of majority, or you can provide that trust assets will be distributed at various intervals throughout the lives of the beneficiaries.
Spendthrift Trust
If you are concerned that a loved one would recklessly spend any money you give him or her, consider setting up a spendthrift trust for that person. With a spendthrift trust you would be able to give money or other assets to someone without giving that person control over it. Thus, the beneficiary could not be able to spend it all on unwise purchases and the property would not be subject to claims by debt collectors.
In addition to special needs trusts, charitable trusts, minor trusts and spendthrift trusts, there are other types of trusts that may fit your needs. To learn more about trusts and how they may work for you, discuss your planning goals with experienced Estate Attorneys in New Orleans at Barrios Kingsdorf & Casteix LLP.
When you create a trust and transfer assets to it those assets are held in the trust for the benefit of another person referred to as the beneficiary. The assets of the trust are managed by someone you appoint as the trustee. The terms of the trust agreement will govern how the trustee is to manage the trust assets, including the circumstances under which distributions may be made from the trust to the beneficiary.
Types of Trusts
Trusts can be set up to provide for loved ones who have special issues, to provide for minors, to provide for a cause that is important to you, or for a number of other personal or financial reasons. In order for a trust be effective it is important to work with Estate Attorneys in New Orleans who will set up your trust according to legal requirements.
Special Needs Trust
If, for example, you are concerned about the future of your child who has Down's Syndrome, autism, cerebral palsy, or some other severe and persistent disability, Estate Attorneys in New Orleans will explain how a Special Needs Trust (SNT) may be a way to give you peace of mind.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
A charitable trust allows you to give property to a charitable organization. There are three common types of charitable trusts: charitable remainder trusts, charitable lead trusts and pooled income trusts. Estate Attorneys in New Orleans will be able to advise you on the appropriate type of charitable trust for you, and will also explain to you the tax benefits of using a charitable trust as a way to give assets to your favorite charitable organizations.
Minor Children Trust
Whether it is during your lifetime or after you pass away, you can make gifts to you minors by transferring the money to a trust. The trust can be for a specific reason such as for the minor's education, or for general expenses. You can include in the trust terms that the trust will end when the beneficiaries reach the age of majority, or you can provide that trust assets will be distributed at various intervals throughout the lives of the beneficiaries.
Spendthrift Trust
If you are concerned that a loved one would recklessly spend any money you give him or her, consider setting up a spendthrift trust for that person. With a spendthrift trust you would be able to give money or other assets to someone without giving that person control over it. Thus, the beneficiary could not be able to spend it all on unwise purchases and the property would not be subject to claims by debt collectors.
In addition to special needs trusts, charitable trusts, minor trusts and spendthrift trusts, there are other types of trusts that may fit your needs. To learn more about trusts and how they may work for you, discuss your planning goals with experienced Estate Attorneys in New Orleans at Barrios Kingsdorf & Casteix LLP.
About the Author:
The New Orleans Probate Lawyers at Barrios Kingsdorf & Casteix, L.L.P. can help with any of your needs. Schedule an appointment with the experienced Estate Attorneys in New Orleans today for assistance.
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