Why Use a Trust?
Trusts are very flexible and can be revocable or irrevocable. Trusts can be created in the lifetime of the grantor (a “living” or “inter vivos” trust) or at the death of the grantor (a “testamentary” trust).
Trusts can be used for any legal purpose. Examples of these purposes are the management of assets on behalf of family members or children in case their parents are disabled or die, protection against creditors, eliminating the need for probate, minimizing estate and other property transfer taxes, and control over insurance policies as well as control over businesses.
Special Needs Trust
Not all families are the same, and not all families have the same needs when it comes to estate planning. Under certain circumstances, special needs planning may be required to ensure assets are properly protected for the future care of family members who are entitled to certain government benefits. Such circumstances typically include the care of an elderly or disabled family member or a child with special needs.
Revocable and Irrevocable Trusts
Trusts are very popular in estate planning because property that is transferred by trust does not go through probate like a Will. So, the fees related to probate are avoided. Trusts can also be used to lower the estate tax due for married couples with larger estates. Trusts can even be set up to care for a beloved animal after the death of the owner.
For more information on using a Trust in your estate planning, contact KMC Law of MD.