A charitable trust is simply a type of trust that names a charity as the beneficiary. There are two types of charitable trusts: The Charitable Lead and The Charitable Remainder. With a Charitable Lead Trust, certain assets will be distributed to the charity you have selected, while the remainder is distributed to your chosen beneficiaries.A Charitable Remainder Trust is set up in almost the opposite way. The trustor of a Charitable Remainder Trust receives a specified amount of income … [Read more...] about What types of charitable trusts are there?
A non-testamentary trust also referred to as a living trust, becomes effective when the trust is signed and notarized, and the property is funded or transferred to the trust. These types of trusts are referred to as "living" trusts or "inter vivos" trusts because they essentially go into effect immediately, while the trustor is still living. A living trust can also be created as either revocable or irrevocable, depending on the purpose of the trust.In contrast, a testamentary trust will … [Read more...] about What is the difference between a living trust and a testamentary trust?
A testamentary trust is a specific type of trust that is included in your last will and testament and provides for the distribution of all or part of your estate. A testamentary trust will usually include the proceeds from a life insurance policy that was held by the grantor. You can have more than one testamentary trust included in the terms of your will. … [Read more...] about What is a testamentary trust?
Living trusts are created to be the revocable type of trust, which means you have the ability to modify its terms at any time during your lifetime. It is always wise to periodically review your living trust terms so that changes can be made as necessary. Most importantly, if there have been changes in your circumstances, like marriage or divorce, the birth of a child or grandchild, or the death of an heir or beneficiary, then you can modify your living trust to reflect those changes. In fact, … [Read more...] about Can I make changes to the terms of a living trust?
An irrevocable trust cannot be modified by the trustor once it has been created and executed. This particular difference makes an irrevocable trust helpful in ways that a revocable trust cannot. Once you establish your irrevocable trust, the assets you placed in the trust are essentially out of the reach of creditors, legal judgments. The trust property does not have to go through probate court and will not be subject to estate taxes. Although you must give up control over the property you … [Read more...] about How is an irrevocable trust different?
Trusts are classified as either revocable or irrevocable based on how the trust operates. A revocable trust, sometimes referred to as a living trust, allows the trustor to modify the terms of the trust or revoke the trust entirely, at any time while the trustor is still alive. Upon the trustor’s death, the trust then becomes irrevocable. A revocable trust is very flexible because it allows you to modify your instructions in order to address any changes in your circumstances or intentions. The … [Read more...] about What is a revocable trust and how does it work?
Similar to a will, a trust provides a way for you to decide how and when your property will be distributed upon your death. However, a trust can also provide a way to protect that property in situations where a certain beneficiary may need assistance in managing that property. Another benefit is that a trust can help you avoid the expensive and time-consuming court process known as probate. … [Read more...] about What are the primary benefits of a trust?
Trusts are essentially fiduciary agreements based on the trust and confidence that exists between the trustee and the person making the trust, known as the trustor. The trust agreement authorizes the trustee to manage the trust assets and distribute them to the named beneficiaries, according to the terms of the trust agreement. There are many different types of trusts with their own benefits. … [Read more...] about What is a trust?