Along with a will a trust is an important estate planning tool that may help you meet your estate planning goals. While a trust should not be used instead of a will, you should consider creating a trust in addition to a will as trusts provide benefits and features that a will does not. However, because setting up a trust can be complex, it is important to work with Estate Attorneys in New Orleans to make sure that your trust is set up according to the legal requirements.
A trust is a legal entity that holds assets for the benefit of another person. It is managed by a fiduciary known as the trustee who makes decisions as to how to manage the trust assets to benefit the trust beneficiaries, according to the terms of the trust agreement. As trusts can be complicated, consider consulting Estate Attorneys in New Orleans who will be able to explain to you the benefits of a trust and how one might help you and the beneficiaries of your choosing.
The Different Types of Trusts
There are a number of different types of trusts and several ways to categorize them. For example, you can create and fund your trust either during your lifetime, or through your will you can direct the creation of a trust upon your death. Estate Attorneys in New Orleans will be able to explain to you the trust options available to you and the best options for your situation.
Special Needs Trust
A special needs trust (SNT) is a unique type of trust that is typically established by parents or grandparents for the benefit of a child who has a disability.
A SNT is a specialized trust designed to provide funds to disabled beneficiaries without jeopardizing the beneficiaries' eligibility for income-based government benefits such as Medicaid. In order for a SNT trust to remain qualified, the funds from the trust may only be used for quality-of-life expenses such as specialized equipment, education, and an aide.
Charitable Trust
Suppose you want to set up a scholarship fund at the local college or give money to a foundation to use for medical research. A charitable trust is a way to give assets to a cause you believe in and at the same time reduce your estate taxes. Estate Attorneys in New Orleans will be able to explain to you how charitable trusts work and how your estate taxes will be affected.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you have an adult child who has a track record of making poor financial decisions, yet you would like to leave that child assets, consider setting up a spendthrift trust. With a spendthrift trust the beneficiary will not have direct access to its funds. However, per the terms of the trust agreement the trustee will have authority to spend the trust assets for the benefit of the trust beneficiary.
In addition to the above-mentioned trusts, there are several other types with different advantages including tax-savings, asset protection, and income-producing. To ensure that your trust is properly drafted and executed, and that it is designed to meet your goals it is important for you to work with experienced Estate Attorneys in New Orleans. Contact Barrios Kingsdorf & Casteix LLP today for help.
A trust is a legal entity that holds assets for the benefit of another person. It is managed by a fiduciary known as the trustee who makes decisions as to how to manage the trust assets to benefit the trust beneficiaries, according to the terms of the trust agreement. As trusts can be complicated, consider consulting Estate Attorneys in New Orleans who will be able to explain to you the benefits of a trust and how one might help you and the beneficiaries of your choosing.
The Different Types of Trusts
There are a number of different types of trusts and several ways to categorize them. For example, you can create and fund your trust either during your lifetime, or through your will you can direct the creation of a trust upon your death. Estate Attorneys in New Orleans will be able to explain to you the trust options available to you and the best options for your situation.
Special Needs Trust
A special needs trust (SNT) is a unique type of trust that is typically established by parents or grandparents for the benefit of a child who has a disability.
A SNT is a specialized trust designed to provide funds to disabled beneficiaries without jeopardizing the beneficiaries' eligibility for income-based government benefits such as Medicaid. In order for a SNT trust to remain qualified, the funds from the trust may only be used for quality-of-life expenses such as specialized equipment, education, and an aide.
Charitable Trust
Suppose you want to set up a scholarship fund at the local college or give money to a foundation to use for medical research. A charitable trust is a way to give assets to a cause you believe in and at the same time reduce your estate taxes. Estate Attorneys in New Orleans will be able to explain to you how charitable trusts work and how your estate taxes will be affected.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you have an adult child who has a track record of making poor financial decisions, yet you would like to leave that child assets, consider setting up a spendthrift trust. With a spendthrift trust the beneficiary will not have direct access to its funds. However, per the terms of the trust agreement the trustee will have authority to spend the trust assets for the benefit of the trust beneficiary.
In addition to the above-mentioned trusts, there are several other types with different advantages including tax-savings, asset protection, and income-producing. To ensure that your trust is properly drafted and executed, and that it is designed to meet your goals it is important for you to work with experienced Estate Attorneys in New Orleans. Contact Barrios Kingsdorf & Casteix LLP today for help.
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The New Orleans Probate Administration Attorneys at Barrios Kingsdorf & Casteix, L.L.P. can help with any of your needs. Schedule a meeting with the experienced Estate Attorneys in New Orleans today for assistance.
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