If an individual would like to create a comprehensive estate plan, one of the measures they will take is to explore the various types of trusts available to them. A trust is an agreement between a third party and an estate. The third party, who is known as the trustee, will administer the trust. The trustee is lawfully bound to the trust’s beneficiaries. If you are interested in constructing a trust, reach out to our skilled estate planning attorney for guidance. Our skilled Montgomery County trust attorney is on your side.
What kinds of trusts are available in Maryland?
There are a number of different kinds of trusts available to choose from in Maryland. This is because it is understood that people have various financial and personal circumstances, and there should be trusts that reflect that. When making a decision, it is essential to confirm that you are selecting the best fit for you and your family. The following are the most typical trusts that individuals in Maryland can select from:
- Irrevocable Trusts: Irrevocable trusts typically need grantors to withdraw their rights to the ownership of the trust; suggesting that without the beneficiary’s explicit permission, the trust cannot be terminated or modified.
- Revocable Trusts: Here, revocable trusts can be changed or terminated by the grantor at any time. The person who completed the trust must be of sound mind and have the capacity to skillfully handle their own affairs without the consent of the beneficiary.
- Irrevocable Life Insurance Trust: Irrevocable life insurance trusts are for individuals who wish to remove their life insurance from their estates to ensure their beneficiaries do not have to face the tax consequences of their life insurance policies. Another benefit of these trusts is that they will reduce the load of estate costs.
- Testamentary Trust: Testamentary trusts are developed as part of the grantor’s will and will only take effect once the grantor passes away.
- Special Needs Trust: Special needs trusts are designed for loved ones with disabilities to guarantee they receive the financial support they need, in addition to, certain benefits through the government.
It is in your best interest to reach out to our firm today if you have any questions or concerns about the different kinds of trusts available in Maryland. Our legal team will walk you through each of your options and determine which will be the best fit for you and your family. Reach out to us today to plan your first meeting with our firm to learn more about our services and how we can best serve you.
Contact our experienced Montgomery County, 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.