When creating an estate plan the first document that most of us think about is a will. However, there are other estate planning tools that may prove essential in helping you reach your overall estate planning goals. One such document is the trust.
A trust is a legal entity that holds assets for the benefit of another person. It is managed by a fiduciary known as the trustee who makes decisions as to how to manage the trust assets to benefit the trust beneficiaries, according to the terms of the trust agreement. As trusts can be complicated, consider consulting Estate Attorneys in New Orleans who will be able to explain to you the benefits of a trust and how one might help you and the beneficiaries of your choosing.
Types of Trust Arrangements
There are a number of different types of trusts and several ways to categorize them. For example, you can create and fund your trust either during your lifetime, or through your will you can direct the creation of a trust upon your death. Estate Attorneys in New Orleans will be able to explain to you the trust options available to you and the best options for your situation.
Special Needs Trust
A special needs trust (SNT) is a unique type of trust that is typically established by parents or grandparents for the benefit of a child who has a disability.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
If you want to leave a sum of money or an asset to help a particular cause, you can do so through a charitable trust. There are several types of charitable trusts, each with different income and estate tax benefits. Estate attorneys in New Orleans will be able to advise you as to which type of charitable trust will best meet your personal and financial goals.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you are concerned that a loved one would recklessly spend any money you give him or her, consider setting up a spendthrift trust for that person. With a spendthrift trust you would be able to give money or other assets to someone without giving that person control over it. Thus, the beneficiary could not be able to spend it all on unwise purchases and the property would not be subject to claims by debt collectors.
In addition to the above-mentioned trusts, there are several other types with different advantages including tax-savings, asset protection, and income-producing. To ensure that your trust is properly drafted and executed, and that it is designed to meet your goals it is important for you to work with experienced Estate Attorneys in New Orleans. Contact Barrios Kingsdorf & Casteix LLP today for help.
A trust is a legal entity that holds assets for the benefit of another person. It is managed by a fiduciary known as the trustee who makes decisions as to how to manage the trust assets to benefit the trust beneficiaries, according to the terms of the trust agreement. As trusts can be complicated, consider consulting Estate Attorneys in New Orleans who will be able to explain to you the benefits of a trust and how one might help you and the beneficiaries of your choosing.
Types of Trust Arrangements
There are a number of different types of trusts and several ways to categorize them. For example, you can create and fund your trust either during your lifetime, or through your will you can direct the creation of a trust upon your death. Estate Attorneys in New Orleans will be able to explain to you the trust options available to you and the best options for your situation.
Special Needs Trust
A special needs trust (SNT) is a unique type of trust that is typically established by parents or grandparents for the benefit of a child who has a disability.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
If you want to leave a sum of money or an asset to help a particular cause, you can do so through a charitable trust. There are several types of charitable trusts, each with different income and estate tax benefits. Estate attorneys in New Orleans will be able to advise you as to which type of charitable trust will best meet your personal and financial goals.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you are concerned that a loved one would recklessly spend any money you give him or her, consider setting up a spendthrift trust for that person. With a spendthrift trust you would be able to give money or other assets to someone without giving that person control over it. Thus, the beneficiary could not be able to spend it all on unwise purchases and the property would not be subject to claims by debt collectors.
In addition to the above-mentioned trusts, there are several other types with different advantages including tax-savings, asset protection, and income-producing. To ensure that your trust is properly drafted and executed, and that it is designed to meet your goals it is important for you to work with experienced Estate Attorneys in New Orleans. Contact Barrios Kingsdorf & Casteix LLP today for help.
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If you need assistance from estate administration attorneys New Orleans, Barrios Kingsdorf & Casteix, L.L.P. can help. Contact us today to schedule a consultation with an experienced New Orleans Probate Administration Attorneys.
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