What Are The Different Types of Trusts?
May 19th, 2020
Most people, when creating their estate plan, will establish documents known as trusts. Generally, trusts are designed for beneficiaries to get the most out of their inheritance and to and help families through the probate process. In the long run, essentially, a trust is designed to save your family both time and money. If you wish to learn more about the different types of trusts available to individuals in Maryland, simply read on and reach out to our experienced Maryland estate planning attorneys today. Here are some of the questions you may have:
What is the difference between an irrevocable and revocable trust?
Many people choose to create these trusts. First, you should understand that if you create an irrevocable trust, you are known as the grantor. When you create these types of trusts, you revoke your rights to the ownership of the trust to the beneficiary. Once you do so, you may not terminate or change the trust without the beneficiaries explicit consent. Irrevocable trusts essentially give your beneficiary rights to all assets of which you include. On the other hand, revocable trusts function slightly differently. Once you create one, you may modify or terminate the trust at as you wish. However, revocable trusts fall into your beneficiary's control upon your incapacitation.
What types of trusts are available in Maryland?
There are several different types of trusts to choose from, which is why you should have a firm grasp of which is best for you. Some of the types of trusts in Maryland are as follows:
- Testamentary Trust: These are usually included in your will. They generally only take effect upon your passing.
- Special Needs Trusts: These can help ensure your loved one with special needs receives both financial support and government benefits to uphold his/her standard of living.
- Irrevocable Life Insurance Trusts: Those who wish to remove their life insurance from their estate may create irrevocable life insurance trusts. These will help beneficiaries avoid certain tax consequences of your life insurance policy.
- Charitable Trusts: If you wish to make a charitable organization the beneficiary of your trust, a charitable trust may be the one for you. Charitable trusts allow individuals to make certain donations they may not have been able to during their lifetime.
Contact our experienced Maryland firm
Here at the Ruben Law Firm, we understand how much your legal situation means to you. That is why we pledge to provide you with the personalized attention you deserve, every step of the way. Our firm is more than happy to assist you through matters of personal injury law, bankruptcy, family law, criminal defense, and estate planning. Attorney Ruben has helped clients achieve favorable results in a wide array of legal matters for years, and he is ready to do the same for you. Simply contact the Ruben Law Firm today.