A Trust is an agreement between a person who funds the Trust with assets (the Grantor) and the person who agrees to manage the assets (the Trustee) for the benefit of someone (the Beneficiary). Because a Trust is a private agreement it is not subject to probate when the Grantor dies and the Grantor can decide when and for whom the assets will benefit. Given this flexibility, a Trust is a popular way to manage assets and plan for succession. In some types of trusts, the Grantor can also be their own trustee. There are several different types of trusts. Each one is specifically designed to provide a certain benefit. These benefits can be asset protection, probate avoidance, tax savings etc.
There are several different types of trusts. Each one is specifically designed to provide a certain benefit. These benefits can be asset protection, probate avoidance, tax savings etc. Some popular types of trusts are the Revocable Living Trust which allows you to be your own trustee during your lifetime, change your trust as you desire and have assets avoid probate court upon your demise. A Credit Shelter Trust can be used to save estate taxes. An Irrevocable Life Insurance Trust can be used to save taxes and provide asset protection. An Irrevocable Income Only Trust can be used to protect your home from a Medicaid lien. And a Charitable Remainder Trust that can be used to save income, estate and capital gains tax.
For more helpful info like this contact me, attorney Gerald J. Turner, at Orsi, Arone, Rothenberg, Iannuzzi & Turner, LLP.
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