If you are looking to create a comprehensive estate plan, along with wills, guardianship, and more, you are most likely researching creating certain trusts. Simply put, a trust is a contract between a third party and an estate. The third-party will administer the trust, and is referred to as the trustee. The trustee is legally obligated to the trust’s beneficiaries. If you are someone who is looking to create a trust, or you are put in charge of administering the trust, you should reach out to our experienced Maryland estate planning attorneys today to learn more about how we can help you through every step of the legal process ahead.
What are the different types of trusts available to me?
There are various types of trusts you may choose from, though each of them pertains to various financial and personal circumstances, so you must ensure you pick the right one to best benefit your family in the long run. Some of the most common trusts available to individuals in Maryland are as follows:
- Irrevocable Trusts: These trusts generally require grantors to revoke their rights to the ownership of the trust. This means that without the beneficiary’s explicit permission, the trust cannot be terminated or changed.
- Revocable Trusts: On the other hand, revocable trusts can be modified or terminated by the grantor at any time. The only catch is that the person who created the trust must be of sound mind (not incapacitated) and can competently handle all of his or her own affairs without the permission of the beneficiary.
- Irrevocable Life Insurance Trust: These trusts are for individuals who wish to remove their life insurance from their estates so beneficiaries do not have to face the tax consequences of their life insurance policies. These trusts will also ease the burden of estate costs.
- Testamentary Trust: These trusts are created as part of the grantor’s will. A testamentary trust will only take effect after the grantor passes away.
- Special Needs Trust: Creating a special needs trust for a loved one who has a disability will help ensure they receive the financial support they need, as well as certain benefits through the government.
If you have any additional questions about estate planning or trusts, please do not hesitate to give our experienced Maryland estate planning attorneys a call today. We are always 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.