Many people create wills to help instruct how their assets are distributed after their passing. While wills are the most basic legal document in an estate plan, it doesn’t always provide what people need. Furthermore, testators may find issues with wills, such as the possibility of estate taxes and probate.
Is there another kind of legal document you can add to your estate plans? Alongside your will, you may wish to make a trust. Trusts are versatile legal documents that put assets in the protection of trustees to hold for heirs.
There are many kinds of trusts. Here are just a few:
1. Revocable trust
A revocable trust is a standard trust that many people focus on making. Revocable trusts can be altered at any time or removed entirely. Assets can be removed and added to a revocable trust during the grantor’s lifetime.
2. Non-revocable trust
Once a grantor passes away, a revocable trust becomes non-revocable. Once a trust becomes non-revocable, it can’t be altered or revoked. Grantors can make non-revocable trusts during their lifetime but can’t alter or revoke them without the beneficiaries’ permission.
3. Generation-skipping trust
Many grandparents wish to give their grandchildren the opportunity for higher education or carefree life. People can make generation-skipping trusts that bypass a prior generation.
4. Charitable trust
Some people wish to give their assets to good causes. People may make charitable trusts that give assets to a public charity or private foundation.
5. Pet trust
When people die, they may leave behind more than just assets, such as pets. People can put aside assets in a pet trust that would be used for the care and upkeep of their pets.
There are many kinds of trusts that you could make. You may need to reach out for legal help when learning about your options.