Trust types are endless. In fact, there are so many options, it can become overwhelming.
For this reason, I like to see individuals and families focus on trust goals instead and allow for advisement on deferring to a specific type of trust to meet their goal.
Of course, trust goals will be different for every person or couple. And, goals are not always understood until time is spent thinking about the end process.
If the thought of a trust goal is too much, consider taking out a piece of paper and identifying the number one priority when becoming incapacitated or moving onto the next level. Then, compare your goals to this brief list:
- Asset protection,
- Transfer property onto loved ones as fast as possible,
- Privacy and reduce the risk of a court being involved,
- To serve young children and get them onto the next level,
- Assure the division of property in equal shares,
- Preserve tax benefits like gift tax marital deductions,
- Serve as a workaround from family drama,
- Business purposes or business succession,
- Preserve split purchase transactions,
- Prevent a former spouse from acquiring assets,
- Charitable reasons,
- Transfer specific gifts onto a specific person or entity,
- Maintain the care of a pet,
- Eligibility for State or Federal resources,
- Protect life insurance proceeds,
- Transfering firearms under the National Firearms Act,
- Preserving Veteran Pensions or Aid and Attendance,
- Make gifts to a minor,
- Preserve a cabin or piece of real estate,
- To hold an interest in retirement accounts,
- Transfer firearms under the National Firearms Act,
- Other personal goals.
The point of making this list is to show every goal is different and some goals overlap. And of course, a person or family can have multiple goals embedded inside their trust purpose.
Again, for those seeking trust types, start with the trust goal and proceed accordingly. After all, human planning starts with a goal.
More Questions about Trust Types?
Estate Attorney Jasper Berg