When is the last time that you have given thought to what will happen to your assets when you pass away? For many, there is a sense of comfort by having a will in place that will distribute their wealth and belongings accordingly. With constantly changing tax regulations, stock market fluctuations and more, many people now prefer to put a legal trust in place. A trust is a legal entity under which one person, the “trustee,” holds legal title to property for the benefit of others (the beneficiaries). The trustee must follow the rules provided in the trust instrument.
The estate planning attorneys at the Law Offices of Todd Cushner & Associates possess an in-depth knowledge of the legal, and personal issues that often involve planning an estate and can work with you to decide the type of trust that will best suit your individual needs as well as your eventual benefactors.
Revocable vs. Irrevocable Trusts
When you create a revocable trust, you maintain control and can make changes to your beneficiaries and other stipulations you have put into place. What’s important to keep in mind for this type of trust, is that all wealth, property and other assets are still considered yours and available to you.
An “irrevocable trust” cannot be modified or terminated without the permission of the beneficiary. After the grantor has transferred assets into the trust, they remove all of their ownership rights of the assets and the trust. The property is safe from creditors and is preserved for the beneficiaries.
Testamentary Trusts
This type of trust is created under a will. This is usually put into place when a spouse wants to leave funds for a husband or wife who may be institutionalized and needs money to cover services that are not covered by Medicaid, such as additional therapy, equipment, evaluations and more. This provides a peace of mind, knowing that a loved one will receive what they need in the event their spouse passes away.
Supplemental Needs Trusts
Often called a special needs trust, if you have a relative who is under 65 years old and disabled, you can move assets into a trust for their benefit without incurring any period of ineligibility. The only thing to consider about this type of trust is that after that person passes, the state must be reimbursed for any Medicaid funds spent on behalf of the disabled person.
For more information about trusts and gain the professional guidance of trusted experts, contact Todd Cushner & Associates today.
