X
X

Find Your Specialist

X

Contact Us

Go Back

Estate Planning Technique – Trusts (Part 2)

In the first part of our Estate Planning Series we discussed common mistakes that clients make when planning their estate. In this post, we will look into one of the best techniques to help you meet your estate planning goals, Trusts.

What is a Trust? A trust is a legal entity; it’s a living, breathing entity. It can be a tax-paying entity and can hold assets, participate in transactions, accumulate income, and distribute money.

Trusts are a great tool for estate planning because they can help accomplish certain behaviors and can provide some protection. For example:

• If you have a dependent that is in a rocky marriage and you leave their inheritance in a Trust, it is not going to be part of their marital estate. This means it would not be subject to property division during a divorce.

• If you have a dependent with a substance abuse problem, the Trust can control how much money they receive, to keep them from squandering their inheritance.

• If you are leaving everything to your spouse, the Trust can help protect the inheritance from a second marriage after you’re gone, and give the ultimate asset distribution to your children even though it provides for your spouse during their lifetime.

Another important type of Trust is a special needs trust. Special needs planning is an important aspect of estate planning for parents of a disabled child. The Trust can be structured to ensure the child will be taken care of for the rest of his or her life.

Trusts have strong appeal as an estate planning tool because they give you the ability to maintain some control, peace of mind and facilitate how things are done even after you are gone.

 

About the Author: Terri Lawson is an expert in estate planning with over 20 years of experience helping individuals and families plan for the future, address concerns and meet their estate planning goals.

Related Articles

Privacy Overview

When you use or access the Site, we use cookies, device identifiers, and similar technologies such as pixels, web beacons, and local storage to collect information about how you use the Site. We process the information collected through such technologies, which may include Personal Information, to help operate certain features of the Site (e.g., to prevent online poll participants from voting more than once), to enhance your experience through personalization, and to help us better understand the features of the Site that you and other users are most interested in.

You can enable or disable our use of cookies per category.

When you use or access the Site, we use cookies, device identifiers, and similar technologies such as pixels, web beacons, and local storage to collect information about how you use the Site. We process the information collected through such technologies, which may include Personal Information, to help operate certain features of the Site (e.g., to prevent online poll participants from voting more than once), to enhance your experience through personalization, and to help us better understand the features of the Site that you and other users are most interested in.

You can enable or disable our use of cookies per category.

Necessary Always Enabled

Essential cookies enable you to navigate our Site and use certain features, such as accessing secure areas of our Site and using other features of our service that require us to keep track of certain information as you navigate from page to page. Although some of these cookies are “required” to enable certain functionality, you can disable them in the browser, but doing so will limit your ability to use the features supported by such cookies.

Functionality cookies are cookies that support features of the Site, such as remembering your preferences.

These cookies collect information about how you use our Site, including which pages you go to most often and if they receive error messages from certain pages. These cookies are only used to improve how our Site functions and performs.

From time-to-time, we may engage third parties that track individuals who visit our Site. These third parties may track your use of the Site for purposes of providing us with certain marketing automation features (to help us improve our outreach to current and prospective clients) and providing you with targeted advertisements.