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Exploring the benefits of trusts for estate planning

On Behalf of | Sep 1, 2023 | Estate Planning

When it comes to securing your assets and planning for the future, trusts can be invaluable tools. Trusts offer a means to safeguard your assets for your own future needs or for the benefit of generations to come.

There are several types of trusts you can explore, each designed to serve a different purpose based on your unique circumstances. Learning more about these trusts and their benefits can help you build a complete estate plan.

Foreign Asset Protection Trusts

Foreign asset protection trusts can shield your international interests against potential legal claims. These trusts can help you navigate international laws and regulations.

Qualified Personal Residence Trust

The Qualified Personal Residence Trust, or QPRT, is an excellent option if you wish to continue residing in your home while also planning for its eventual transfer to your heirs. By placing your primary residence into a QPRT, you can ensure your loved ones inherit your home without the burden of excessive estate taxes.

Medicaid Asset Protection Trusts

By placing assets into this type of trust, you can safeguard your healthcare and Medicaid needs without depleting your estate. This can help ensure that you have assets to leave behind for your heirs, even if you have a complex medical situation.

Special Needs Trusts

A special needs trust provides ongoing financial support while preserving a family member’s eligibility for special government assistance programs. These trusts offer a safety net, ensuring that your loved one receives the care they need without jeopardizing their benefits.

Spendthrift Trusts

Spendthrift trusts shield beneficiaries from their own financial irresponsibility. If you have concerns about leaving an inheritance to someone who might struggle to manage it, a spendthrift trust can provide structure and oversight.

Generation-Skipping Trusts

Generation-skipping trusts can facilitate the seamless transfer of assets from one generation to the next. These trusts minimize estate taxes and can benefit grandchildren or even more distant descendants.

Surveys show that as many as 67% of Americans do not have an estate plan. For those just getting started with legacy planning, as well as those expanding on an existing will, adding a trust can bring extra peace of mind.