Selecting The Correct Sort Of Trust
by Robert Mukarak
In addition to a will, a trust is one of the most important estate planning tools to have. Like a will a trust is a way to leave assets to your loved ones. However, trusts have important benefits that a will cannot offer.
A trust is a legal entity that holds assets for the benefit of another person. It is managed by a fiduciary known as the trustee who makes decisions as to how to manage the trust assets to benefit the trust beneficiaries, according to the terms of the trust agreement. As trusts can be complicated, consider consulting Estate Attorneys in New Orleans who will be able to explain to you the benefits of a trust and how one might help you and the beneficiaries of your choosing.
The Different Types of Trusts
There are several different types of trusts each with different features and different financial benefits. Estate Attorneys in New Orleans will be able to let you know which type of trust is appropriate for your needs.
Special Needs Trust
Special needs trusts (SNT) are commonly set up by parents or grandparents of children who have a disability such as Down's syndrome or cerebral palsy, to ensure that adequate funds will be available for their specialized needs well into the future.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
Suppose you want to set up a scholarship fund at the local college or give money to a foundation to use for medical research. A charitable trust is a way to give assets to a cause you believe in and at the same time reduce your estate taxes. Estate Attorneys in New Orleans will be able to explain to you how charitable trusts work and how your estate taxes will be affected.
Minor Children Trust
Whether it is during your lifetime or after you pass away, you can make gifts to you minors by transferring the money to a trust. The trust can be for a specific reason such as for the minor's education, or for general expenses. You can include in the trust terms that the trust will end when the beneficiaries reach the age of majority, or you can provide that trust assets will be distributed at various intervals throughout the lives of the beneficiaries.
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 providing for the specialized needs of your loved ones or a charitable cause, trusts can provide you income and estate tax benefits. To learn more about trusts, contact experienced Estate Attorneys in New Orleans at Barrios Kingsdorf & Casteix LLP.
If you need assistance from <a href="http://business-and-real-estate-law.weebly.com/blog/choosing-the-right-type-of-trust-with-help-from-estate-attorneys-in-new-orleans">Estate Attorneys in New Orleans</a>, Barrios Kingsdorf & Casteix, L.L.P. can help. Contact us today to schedule a consultation with an experienced <a href="https://plus.google.com/+BarriosKingsdorfCasteixNewOrleans">New Orleans probate attorney</a>.
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New Unique Article!
Title: Selecting The Correct Sort Of Trust
Author: Robert Mukarak
Email: va3@thunderheadmarketing.com
Keywords: New Orleans estate attorneys, estate administration, probate, probate administration,Estate planning, wills, trusts,finances, family
Word Count: 542
Category: Legal
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