How your assets are used after you pass away is not always in your control. Your assets could be mismanaged and poorly invested. However, you can protect your legacy with a trust.
A trust is a legal arrangement that allows a trustee to manage your estate, helping to ensure assets are correctly distributed and protected against estate taxes and disputes. There are several types of trusts that allow you to make unique decisions. Here is what you should know:
1. Incentive trust
If you want your estate to be used for a specific purpose, you may want to consider making an incentive trust. An incentive trust allows you to set parameters for how trust funds are used. For example, you can limit the use of trust funds for only college purposes, encouraging beneficiaries to seek a higher education.
2. Charitable trust
You may want to give part of your estate away to a charity. A charitable trust fund allows you to designate a charity, non-profit or private organization as a beneficiary. The charity can receive a portion of the trust fund over a specific amount of time or as a lump sum payment.
3. Special-needs trust
One of your beneficiaries may receive government benefits, such as supplemental income or medical coverage. Your beneficiary could lose these benefits if they receive a large inheritance. You can limit the amount of funds a beneficiary receives to help ensure they continue receiving government benefits.
Do you want to learn more about your trust options? You can explore your trust options by reaching out for legal guidance.