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Often overlooked trusts you may want in your estate plan

On Behalf of | Jun 7, 2024 | Estate Planning |

Estate planning involves more than just writing a will. Trusts can offer more control, protection, and benefits for your assets and beneficiaries. Some lesser-known trusts might be valuable additions to your estate plan.

Spendthrift trust

A spendthrift trust protects beneficiaries who may not manage money well. The trustee controls the trust’s assets, distributing funds according to your instructions. This helps ensure the beneficiary does not waste the inheritance and protects it from creditors.

Special needs trust

A special needs trust supports a disabled loved one without affecting their eligibility for government benefits. The trust provides for their needs while preserving access to essential programs like Medicaid and Supplemental Security Income (SSI).

Charitable remainder trust

A charitable remainder trust allows you to support a charitable cause while benefiting from tax advantages. You can receive income from the trust during your lifetime, with the remaining assets going to the designated charity after your death.

Life insurance trust

A life insurance trust manages life insurance policies outside your taxable estate. This can help reduce estate taxes and provide liquidity to pay estate expenses or support beneficiaries.

Qualified personal residence trust

A qualified personal residence trust (QPRT) allows you to transfer your home to beneficiaries at a reduced gift tax value. You can continue living in the home for a specified period.

Importance of professional guidance

Considering these often overlooked trusts can enhance your estate plan. Consulting with an estate planning professional ensures you select the right trusts to meet your specific needs and goals.