There are many different types of trusts that serve a wide range of purposes. It can be challenging to know what kind of trust best fits your needs and goals. At the law firm of Leonard F. Berg, Attorney at Law, our experienced estate planning lawyer will spend a significant amount of time with you in order to understand your unique situation, answer your questions, explain your options and help you make the best decisions regarding your plan for the future.
Preparing Trusts For People With Disabilities, Family Trusts And Living Trusts
Similar to a will, a trust outlines your wishes regarding how your assets will be distributed and to whom upon your death. One of the primary reasons people choose to draft trusts rather than wills is to prevent their estate from going through the probate process and to minimize estate taxes. However, the wide varieties of trusts serve many different purposes that may offer even greater benefits specific to an individual's and family's needs. For example:
- A trust for a person with disabilities can allow a person with a disability to plan for how his or her assets will be managed and also preserve his or her eligibility for government benefits.
- A testamentary trust is a trust within a will that leaves money to be used for a spouse or another beneficiary without disqualifying the beneficiary from Medicaid benefits.
- A living trust or revocable trust is a trust that goes into effect while a person is still alive and allows the individual to amend the trust during his or her lifetime.
- An irrevocable trust cannot be modified after the trust is in place — the assets belong solely to the beneficiary. The main benefit of this type of trust is that the appreciated assets will not be subject to estate taxes.
- A family trust can be specifically designed to distribute assets to members of a person's family upon his or her death.
- A special needs trust allows an individual to set aside money for a person with special needs (often a family member), ensuring a good quality of life for the beneficiary while maintaining eligibility for Medicaid and other benefits.
There are many more trusts available that may be appropriate for you and your family. The best way to find out what's right for you is to speak with an experienced attorney.
Contact An Experienced Elder Law And Special Needs Attorney
Contact us online, or call 618-216-6681 or toll free at 888-353-6236 to arrange a consultation with our knowledgeable East Alton trust lawyer today. We serve clients across the Metro East and the Illinois River Bend.