A Trust is a legal entity through which a third party, known as a Trustee, holds and directs the distribution of assets on behalf of a beneficiary or beneficiaries.
- A Revocable Trust is a Trust that is established during the lifetime of a person known as a settlor. It can be modified or even terminated by the Settlor. A Living Trust is a type of revocable trust.
- An Irrevocable Trust is a Trust that cannot be changed, modified or terminated by the Settlor (the person who established the Trust).
- A Special Needs Trust is a Trust that is established for the benefit of a beneficiary who is disabled. The purpose of the Trust is to hold assets belonging to the beneficiary so those assets do not affect the beneficiary's entitlement to disability benefits.
A Trust can be a useful tool as part of your Estate Plan. For example, if you have minor children, you can include a Trust in your Will so that any assets that would go to the minor children, instead go into a Trust for the benefit of the children until they reach the age that you set.
The answer to the question of whether a creating a Trust would be a useful part of your Estate Plan depends on many different factors. If you would like to discuss your Estate Plan and whether having a Trust makes sense for you, please contact me.