Posts Tagged Trusts

Five Trusts That Can Help You Accomplish Specific Planning Goals

Five Trusts That Can Help You Accomplish Specific Planning Goals

Trusts come in many “flavors.” Here are five trusts that can be used to achieve specific planning goals. Generation-Skipping Trust (GST) Let’s say your son has remarried and you’re worried that his second wife might not pass his inheritance to the children from your son’s first marriage—that is, your grandchildren. Or maybe one of your children is not responsible enough to handle an inheritance on his or her own and you want to make sure your grandchildren will receive a portion of your assets. With a Generation-Skipping Trust, the assets put into the trust will be transferred to your grandchildren when the GST goes into effect. A GST does not necessarily disinherit your children. The trust can be structured so that your children can draw on the income/earnings from the trust while your grandchildren stand to inherit the balance of the trust. Qualified Terminable Interest Property Trust (QTIP) A QTIP

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Estate Planning Basics: An Introduction to Trusts, Continued

Estate Planning Basics: An Introduction to Trusts, Continued

Last time we discussed some of the terminology associated with trusts. Now let’s look at how revocable trusts differ from irrevocable trusts and the benefits of having a trust. Revocable versus irrevocable trusts A revocable trust is a trust that can be altered by the grantor during his or her lifetime. An irrevocable trust, on the other hand, is a trust that cannot be changed by the grantor (except under extraordinary circumstances). In the case of irrevocable trusts, the grantor typically foregoes total control of the property and must obey all trust rules and guidelines. Furthermore, a trust can be revocable during the grantor’s lifetime and then become irrevocable upon the grantor’s death. When most people use the word “trust” in the context of estate planning, a revocable living trust is the one they have in mind. A revocable living trust allows you to maintain complete control over your assets

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Estate Planning Basics: An Introduction to Trusts

Estate Planning Basics: An Introduction to Trusts

Perhaps you have heard about trusts but wonder exactly what they are and what they can help you accomplish. Simply put, a trust is an agreement outlining how assets will be managed and held for the benefit of another person. There are many types of trusts, capable of addressing a wide range of concerns and accomplishing a number of important goals. Let’s begin our discussion by looking at the elements and terminology shared by most trusts. The Grantor All trusts have a grantor (also known as a trustor or settler). The grantor is the person who creates the trust and has the legal authority to transfer property held in the trust. The Beneficiary The beneficiary is the person who “benefits” from the trust. A beneficiary can be one person or a number of different parties. A beneficiary can also be an institution, such as a charity. The Trustee The trustee

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