Exploring the different types of trusts that are available
In order to assure that a person’s lifetime worth of property and assets gets properly allocated according to the owner’s wishes, there are various types of trusts available. A trust, in its simplest term, is a contract to be honored by a power of attorney or court to divide property and assets according to the trustmaker’s wishes. There are several types of trust available, each with their own set of rules.
A revocable trust offers flexibility to the trustmaker, as it may be modified, altered, changed or entirely revoked at any time. Revocable trusts are popular and helpful in having the assets and property avoid probate upon the death of the trustmaker. This trust typically becomes an irrevocable trust immediately following the death of the trustmaker.
An irrevocable trust acts exactly as it sounds. Once formed, unlike a revocable trust, an irrevocable trust cannot be modified, altered, changed or revoked under any circumstances, not even by the trustmaker. A charitable trust allocates assets or property to a public entity or charity. These can be especially valuable in many circumstances, as it is not uncommon for the trustmaker to be acknowledged by the charity once the charitable trust is created.
A special needs trust can also be created to provide financial assistance to a beneficiary without the beneficiary losing existing or future government benefits, such as Social Security Disability benefits. There are specific requirements for a special needs trust to assure that the assets are properly used. This may include medical expenses, rehabilitation or therapy costs, equipment, education and ongoing treatments for the illnesses or disabilities suffered by the beneficiary. It may be a good idea to get more information about trust administration to make certain that trusts are properly crafted and legal, and to assure that the trustmaker’s wishes are met with regards to their trusts.