- What Is a First-Party Special Needs Trust?
Individuals living with disabilities that impact their day-to-day or long-term medical conditions often depend on external support. For example, they may rely on government assistance programs, like Medicaid, to access necessary care. However, some of these programs have strict asset limit rules that can make or break your eligibility. One way disabled individuals, families and… read more…
- What Is a Private Trust Company?
A private trust company or family trust company is an estate planning tool that can be used to preserve wealth. This type of trust entity is most often used by high-net-worth and ultra-high-net-worth individuals. For example, someone who runs a family-owned business and has $150 million in assets may choose to establish a private trust… read more…
- How Charitable Lead Trusts Work
A charitable lead trust is a form of charitable trust that first distributes assets to the named charities. Once the assets have been distributed to the charities as specified in the trust, the named beneficiaries receive the remainder of the… read more…
- When Can a Trust Be Contested?
Trusts offer some unique advantages for estate planning and they can be a valuable tool for creating a legacy of wealth. But what happens when the beneficiaries of a trust disagree with its terms or the way the trustee manages it? Can a trust be contested? The short answer is that yes, in certain situations,… read more…
- How a Charitable Trust Works
A charitable trust holds assets and distributes them to charities. When you establish the trust you can specify how it will manage and invest its assets, as well as how it will make donations. There are some tax benefits to setting… read more…
- How Pooled Special Needs Trusts Work
When it comes to setting aside money for someone with special needs, there are a few important considerations to keep in mind. For instance, how do you provide for everyday needs and living expenses while also maintaining eligibility for public… read more…
- Annuity Trust (CRAT) vs. Unitrust (CRUT)
Charitable trusts can be used to establish a legacy of giving while yielding some potentially valuable estate planning benefits. A charitable remainder annuity trust (CRAT) is one option; a charitable remainder unitrust (CRUT) is another. CRATs and CRUTs can both be used for some things, like estate planning and charitable giving purposes, but there are… read more…
- Estate Planning: Can You Sue a Trust?
Trusts can provide certain benefits for estate planning, including asset protection. But can you sue a trust? It’s an important question to ask if you have a trust or plan to create one, are named as the beneficiary to a… read more…
- How an A-B Trust Works
An A-B trust, also known as a bypass trust, is a legal arrangement that allows married couples to avoid estate tax on certain assets when one spouse passes away. When one spouse dies, the estate’s assets are split into two separate trusts, A trust and B trust. As the size of the estate tax exemption… read more…
- Warranty Deed vs. Deed of Trust
When purchasing a home, there are a number of very important legal documents involved. Two such documents that you may encounter are a warranty deed and a deed of trust. A financial advisor could help you navigate through important financial decisions… read more…
- How to Set Up a Trust Bank Account
Understanding what you need to support your loved ones during and after your life can be a daunting task. Especially when it comes to the issue of assets and finances. Many people take steps like setting up a will or trust through a financial advisor. But beyond those legal agreements, a question arises about whether special… read more…
- What Is a Living Trust in Real Estate?
While no one wants to think about his or her own death, planning for the inevitable is an important part of protecting your assets and those you love. There are a few important legal steps you can take to prepare for the future of your estate, one of which may include the creation of a… read more…
- What Is a Property Trust and Who Needs One?
Trusts are useful financial tools, often used for the purpose of planning an estate. A trust is essentially a legal framework into which ownership of assets can be placed. These assets can include financial products like stocks and bonds, or it can include real physical property, like land, jewelry or vehicles. There are a number… read more…
- How Does a Pot Trust Work?
A pot trust is a type of trust listing children as beneficiaries, with the trustee using his or her discretion as to how trust assets should be spent. If you have minor children, setting up a pot trust could help meet their financial needs if something should happen to you. This type of trust allows… read more…
- Trustor vs. Trustee: What’s the Difference?
Trusts are a useful tool for financial and estate planning, allowing a family to set assets aside to be passed on when someone dies. Some of the language around trusts, though, can be confusing. For instance, while they sound extremely similar, trustor and trustee aren’t quite interchangeable. Though they can certainly be the same person,… read more…
- How Does a Credit Shelter Trust Work?
A credit shelter trust is used to help married couples with significant assets pass their estates after their deaths to children or other beneficiaries without incurring estate taxes. Credit shelter trusts are also useful for avoiding probate, shielding assets from creditors and ensuring the wishes of a deceased spouse are carried out. While they are… read more…
- What Is a Business Trust and How Does It Work? – Definition
When it comes to trusts, most people are familiar with individual trusts, trust funds or family trusts that are connected to an individual or family. But another type of trust exists for entrepreneurs and companies called business trusts, which are… read more…
- Trust vs. LLC: What’s the Difference?
Trusts and limited liability companies (LLCs) are both legal vehicles that can be used to protect assets. Both are also created at the state level but they have different features and different uses. Trusts are primarily used to avoid taxation… read more…
- Irrevocable Trust vs. Will: What’s the Difference?
Two of the possible ways for people making arrangements for the disposition of their assets after their death are wills and irrevocable trusts. Each one has unique strengths. Here’s how the two compare and contrast so you can determine if… read more…
- Revocable Trust vs. Will: What’s the Difference?
Estate planning is an important step in taking care of what matters most, your loved ones and the life you’ve worked hard for. Two of the options are a revocable trust and a will. But which one is the best… read more…
- In Trust For vs. Payable On Death: What’s the Difference?
When shaping an estate plan, one of the most important steps is deciding who has access to your assets. Specifically, that means who inherits bank accounts and other financial accounts when you pass away. In trust for vs. payable on… read more…
- Pros and Cons: Payable on Death (POD) Accounts
Payable on death accounts can help streamline the process of transferring certain assets to loved ones after you pass away. Also referred to as a POD account or Totten trust, a payable-on-death account can be established at a bank or… read more…
- Simple Trusts vs. Complex Trusts
A trust can be a useful estate planning tool, in addition to a will. You can use a trust to remove assets from probate, potentially minimize estate and gift taxes and ensure that assets are managed on behalf of beneficiaries… read more…
- How Much Does It Cost to Set Up a Trust?
A living trust is an estate planning vehicle that protects your assets against taxes and probate after you die. There are multiple types of trusts, like marital, bypass, generation-skipping and more. You can generally assign beneficiaries and make adjustments, unless your… read more…
- What Is a Grantor Retained Income Trust (GRIT)?
Trusts can be useful in estate planning for passing on assets to your heirs. A grantor retained income trust (GRIT) is a specific type of trust that allows you to transfer assets while still benefiting from the income they generate.… read more…