No two trusts are alike as a trusts and estates attorney in Sanford North Carolina can explain. Although some people may not need a trust, many can benefit from the creation of a trust as it is an effective form to protect assets and avoid probate. Some of the types of trusts a trusts and estates attorney in Sanford North Carolina may recommend include:
Living Revocable Trust
This is the most common type of trust. It involves the maker of the trust designating a trustee to hold and manage assets on the beneficiaries’ behalf in accordance with the instructions in the trust document. It can be changed at any point during the maker of the trust’s life. The maker of the trust can add and remove property from the trust as he or she sees fit. Since the trust is the owner of the property, this property does not pass through probate.
An irrevocable trust cannot be changed absent extraordinary circumstances. This type of trust establishes how the property in the trust will be managed. This type of trust is often used as a way to spend down assets or limit the beneficiary’s access to the funds, such as with Medicaid planning or veterans’ benefits planning. They may also be used for tax purposes to avoid estate taxes or to avoid life insurance being counted toward the decedent’s taxable estate.
Special Needs Trust
This type of trust provides funds for a person with a disability or other special needs. Because public benefits are usually based on a person’s financial eligibility, specific planning must be put in place in order to assist the individual with the disability without affecting his or her benefits.
Asset Protection Trust
This trust is created with the intent to protect the trust maker’s assets from bankruptcy, creditors, divorce or professional liability claims.