During your estate planning process, you may come across assets that you just aren’t sure how to organize. Should you hand your favorite wristwatch down to your oldest son? How about your pearl necklace, should it go to your daughter or granddaughter? You can choose between a variety of trusts that will make the process as seamless as possible. Check out five different options below to help you make your decision!
Revocable Trusts
Revocable trusts ensure that your assets go to those whom you intended. Many who conduct estate planning tend to use this type of trust instead of a will in order to avoid assets going to probate, but keep in mind that this is not always guaranteed.
Irrevocable Trusts
With irrevocable trusts, your beneficiaries (or the amount you leave to them) never change once you finalize the paperwork. On the positive side, the beneficiary can be taxed with low rates for receiving this trust.
Educational Trusts
If you wish to support your children or grandchildren with the security of a college fund after you pass away, then you can leave behind a monetary option through an educational trust.
Spendthrift Trusts
People can also protect their beneficiaries with a spendthrift trust that is protected from being used to pay off debts. So, creditors will not be able to gain access to this trust.
Charitable Trusts –AOG
If you would like to dedicate a trust of yours to a group or individuals as charity, then it must meet a charitable need pre-approved by U.S. Law. These needs include:
- Relief of poverty
- Advancement of education
- Advancement of religion
- Promotion of health
Add a Trust to Your Estate Plan!
Are you scratching your head over which type of trust to use for your estate planning efforts? If so, our estate planning lawyers in McAllen want to help make the process easier for you. Learn more about trusts and contact us to ensure that your interests are being upheld.