Are There Different Types of Trusts?

Are There Different Types of Trusts?

One of the most critical aspects of a comprehensive estate plan includes creating trusts. Trusts are designed so that your beneficiaries can receive the most out of their inheritance, and help families get through the probate process as soon as possible. Please continue reading and reach out to our experienced Maryland estate planning attorneys to learn more about trusts and how our firm can help you through the legal process going forward. Here are some of the questions you may have:

What is an irrevocable trust?

If you create an irrevocable trust, you are known as the “grantor.” In an irrevocable trust, you will have to revoke your rights to the ownership of the trust, known as the beneficiary, that prevents the trust from ever getting terminated or changed without the beneficiary’s explicit consent. When creating an irrevocable trust, you essentially give your beneficiary exclusive rights to your assets. Revocable trusts, however, are a bit different in that when you create one, you are allowed to modify or terminate the trust at your will. However, revocable trusts will fall into the control of their beneficiary if you ever become incapacitated.

What types of trusts are available in Maryland?

There are various trusts available to individuals in Maryland, some of which include the following:

  • Irrevocable Life Insurance Trusts: These are designed for people who wish to remove their life insurance from their estate. This helps beneficiaries avoid certain tax consequences of your life insurance policy.
  • Charitable Trusts: People establish these trusts when they wish to make a charitable organization the beneficiary of the trust. These allow people to make certain donations they may not have been able to during their lifetime, as well as assist in implementing income tax, or estate tax planning methods for the grantor in question.
  • Testamentary Trust: Generally, you include these trusts in your will, and they generally only take effect once you pass away.
  • Special Needs Trusts: If you have a loved one with a disability, you may wish to establish a special needs trust. This helps ensure your loved one receives all the financial support, in addition to government benefits he/she needs to uphold his/her standard of life.

No matter your financial and personal situation, if you would like to establish a trust, you know where to turn–simply speak with JD Katz.

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.

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