You’ve exhausted every angle on the google search for “trust attorney near me,” and you’ve decided, without a doubt that setting up a trust to avoid probate is the best option anyone has for their end of life planning. However, making the decision to set up a trust is the easy part. Did you know there are five different types of trusts to choose from, and they each benefit different situations? Here’s what the trust attorney near me thinks you should know about the five types of trusts before deciding which one is best for you.
Credit-Shelter Trust / Family Trust
A Credit-Shelter Trust, also known as a family trust, is the most common and easiest to arrange. This type of trust involves writing a will that bequeaths only up to the amount that is estate-tax exempt into the trust and then transfers the rest of the property to the spouse, estate-tax free. The family trust also allows for specifications about how assets can be distributed, spent, and used. Once your estate is placed in a family trust, even if that trust continues to grow (which is can until your death), it remains tax-free.
Generation Skipping Trust
Very wealthy people often create a generation skipping trust, so they can bequeath assets to family members that are two generations removed such as grandchildren or great-grandchildren. There is a generation-skipping transfer tax on these trusts however if more than the exemption amount is placed into the trust.
Qualified Personal Residence Trust
A qualified personal resident trust (QPRT) removes the value of your primary residence or vacation home from the estate value so that you can gift the home to your children or spouse and still live in the home and maintain control for a set period of years.
Irrevocable Life Trust
An Irrevocable life trust removes the value of your life insurance from your taxable property. This trust ensures that your heirs have some cash to help pay funeral costs or estate fees. These are most beneficial when there are liquid or business assets to pass down.
Qualified Terminable Interest Property Trust
A qualified terminable interest property trust is a great idea for families that have gone through divorce and remarriage with stepchildren or half-siblings that are expected to be heirs. Your spouse will be able to receive income from the trust while other beneficiaries will be able to claim the remainder after your spouse dies.
If you’re tired of searching for a qualified “trust attorney near me,” contact the Law Offices of Kimberly K. Muenter, P.A. at 941-229-2529 and end your search with the best in Florida.