As you know, creating a well-rounded estate plan is one of the most important things that anyone can do in their lifetime. Of course, there are various parts to a comprehensive estate plan, including a will, guardianships, and more. That being said, some of the most important estate planning documents are trusts. That being said, there are various types of trusts available, and the type that is right for you depends on your individual situation. Please continue reading and speak with our knowledgeable Maryland estate planning attorney to learn more about trusts and which trust is right for you. Here are some of the questions you may have:
What is a trust and how are trusts different from one another?
When someone creates a trust, they are creating a contract between a third party and their estate. Essentially, the third party will administer the trust, and is referred to as the trustee. Some of the various trusts avilaible to individuals throughout the state of Maryland are as follows:
- Irrevocable Trusts: An irrevocable trust requires grantors to relinquish their rights to the ownership of the trust, which means that if they do not gain the beneficiary’s explicit permission, they will not be able to modify or terminate the trust after its creation.
- Revocable Trusts: Revocable trusts are different from irrevocable trusts in that they can be modified or terminated by the grantor, as long as the grantor is of sound mind and can handle his or her own life affairs without the beneficiary’s permission.
- Testamentary Trust: You can create a testamentary trust as a part of your will, and this kind of trust will only take effect after you pass away.
- Special Needs Trust: This type of trust is ideal for those with beneficiaries who have special needs. Creating this trust can help ensure that your beneficiary can receive your assets after your passing while retaining his or her right to certain government benefits.
- Irrevocable Life Insurance Trust: If you are someone who is looking to remove your life insurance policy from your estate so your beneficiaries will not have to face certain tax consequences of that insurance policy, upon your passing, you should consider creating an irrevocable life insurance trust. This eases the burden of estate costs on behalf of your family.
If you are ready to create your trust, give our firm a call today. We are here to help.
Contact our experienced Maryland firm
The attorneys at JD Katz have years of experience compassionately guiding clients in Maryland through the estate planning and administration process. Our firm also has experience with matters of elder law, business law, tax law, and litigation. For a legal team that will put your needs first, contact JD Katz today.