When creating an estate plan the first document that most of us think about is a will. However, there are other estate planning tools that may prove essential in helping you reach your overall estate planning goals. One such document is the trust.
When you create a trust and transfer assets to it those assets are held in the trust for the benefit of another person referred to as the beneficiary. The assets of the trust are managed by someone you appoint as the trustee. The terms of the trust agreement will govern how the trustee is to manage the trust assets, including the circumstances under which distributions may be made from the trust to the beneficiary.
Types of Trust Arrangements
Trusts can be set up to provide for loved ones who have special issues, to provide for minors, to provide for a cause that is important to you, or for a number of other personal or financial reasons. In order for a trust be effective it is important to work with Estate Attorneys in New Orleans who will set up your trust according to legal requirements.
Special Needs Trust
If, for example, you are concerned about the future of your child who has Down's Syndrome, autism, cerebral palsy, or some other severe and persistent disability, Estate Attorneys in New Orleans will explain how a Special Needs Trust (SNT) may be a way to give you peace of mind.
The reason that a specific type of trust is needed for this purpose is because people with disabilities often rely on government-funded, need-based benefits such as Medicaid. If you were to provide funds to your special needs child or grandchild as an outright gift, he or she may lose eligibility for such need-based benefits.
Charitable Trust
A charitable trust allows you to give property to a charitable organization. There are three common types of charitable trusts: charitable remainder trusts, charitable lead trusts and pooled income trusts. Estate Attorneys in New Orleans will be able to advise you on the appropriate type of charitable trust for you, and will also explain to you the tax benefits of using a charitable trust as a way to give assets to your favorite charitable organizations.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you have an adult child who has a track record of making poor financial decisions, yet you would like to leave that child assets, consider setting up a spendthrift trust. With a spendthrift trust the beneficiary will not have direct access to its funds. However, per the terms of the trust agreement the trustee will have authority to spend the trust assets for the benefit of the trust beneficiary.
In addition to the above-mentioned trusts, there are several other types with different advantages including tax-savings, asset protection, and income-producing. To ensure that your trust is properly drafted and executed, and that it is designed to meet your goals it is important for you to work with experienced Estate Attorneys in New Orleans. Contact Barrios Kingsdorf & Casteix LLP today for help.
When you create a trust and transfer assets to it those assets are held in the trust for the benefit of another person referred to as the beneficiary. The assets of the trust are managed by someone you appoint as the trustee. The terms of the trust agreement will govern how the trustee is to manage the trust assets, including the circumstances under which distributions may be made from the trust to the beneficiary.
Types of Trust Arrangements
Trusts can be set up to provide for loved ones who have special issues, to provide for minors, to provide for a cause that is important to you, or for a number of other personal or financial reasons. In order for a trust be effective it is important to work with Estate Attorneys in New Orleans who will set up your trust according to legal requirements.
Special Needs Trust
If, for example, you are concerned about the future of your child who has Down's Syndrome, autism, cerebral palsy, or some other severe and persistent disability, Estate Attorneys in New Orleans will explain how a Special Needs Trust (SNT) may be a way to give you peace of mind.
The reason that a specific type of trust is needed for this purpose is because people with disabilities often rely on government-funded, need-based benefits such as Medicaid. If you were to provide funds to your special needs child or grandchild as an outright gift, he or she may lose eligibility for such need-based benefits.
Charitable Trust
A charitable trust allows you to give property to a charitable organization. There are three common types of charitable trusts: charitable remainder trusts, charitable lead trusts and pooled income trusts. Estate Attorneys in New Orleans will be able to advise you on the appropriate type of charitable trust for you, and will also explain to you the tax benefits of using a charitable trust as a way to give assets to your favorite charitable organizations.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you have an adult child who has a track record of making poor financial decisions, yet you would like to leave that child assets, consider setting up a spendthrift trust. With a spendthrift trust the beneficiary will not have direct access to its funds. However, per the terms of the trust agreement the trustee will have authority to spend the trust assets for the benefit of the trust beneficiary.
In addition to the above-mentioned trusts, there are several other types with different advantages including tax-savings, asset protection, and income-producing. To ensure that your trust is properly drafted and executed, and that it is designed to meet your goals it is important for you to work with experienced Estate Attorneys in New Orleans. Contact Barrios Kingsdorf & Casteix LLP today for help.
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The New Orleans Probate Administration Attorneys at Barrios Kingsdorf & Casteix, L.L.P. will help you with all of your probate problems. Schedule an appointment with the experienced New Orleans estate lawyers today for assistance.