Estate Planning: Trusts
Think of a Trust as a vessel in which you can hold your assets in for a time until you desire for them to be released to the people or organizations that you would like to receive them.
Trusts come in a variety of forms and names. Trusts can be established in many different situations.
Some common names of Trusts include:
- Living Trusts - A Living Trust is one that is created for you but is administered by another party you are still alive. It describes how your property should be managed while you are alive, and how it should be distributed upon your death. A Living Trust can be either revocable or irrevocable. A Living Trust avoids probate and therefore gets assets distributed more quickly, than if you just have a Will.
- Revocable Trusts - A Revocable Trust is one that you may revise or even terminated during your lifetime. Since this type of trust may be altered at any time until your death, it is considered part of your estate and is subject to taxation laws. Your property will be passed on to your designated beneficiaries only after your death, and the Revocable Trust will then become Irrevocable.
- Irrevocable Trusts - An Irrevocable Trust cannot be changed or canceled once it is set up without the consent of the beneficiary (s).
- Special Needs Trusts - A Special Needs Trust is created to ensure that beneficiaries who are disabled or mentally ill can get complete use of the assets or property which is intended to be held for their benefit. Such trusts may also avoid beneficiaries losing access to essential government benefits, such as Social Security, Medicaid or Medicare.
The law firm of Kennedy West, with located in the Metroplex area of Dallas, Fort Worth Texas provides professional legal consultation on establishing Trusts to ensure the protection of your assets for long term life care planning and for taking care your loved ones you may leave behind.
