When it comes time to tackle the estate planning process, you may turn your immediate attention to a will.
While a will is one of the best ways to plan for the future, it’s not the only option. You may come to find that some type of trust could do wonders for your estate plan, both now and in the future.
Here’s something you need to know about creating a trust: There is more than one type to choose from. You need to understand the finer details of each one, as to ensure yourself of making the right decision.
Here is a list of some of the most common types of trusts:
- Revocable trust. This is created during your lifetime, and you have the ability to change, alter or modify the document at your discretion.
- Irrevocable trust. As the name implies, you cannot change, alter or modify an irrevocable trust after its creation. Once you move property into the trust, you are unable to take it back out.
- Charitable trust. If you want to leave an asset to a charity upon your death, a charitable trust allows you to do just that.
- Special needs trust. If you’re concerned about the well-being of a special needs loved one, you’ll want to learn more about this type of trust. With this in place, you don’t have to worry about making a decision that will disqualify your loved one from receiving government benefits in the future.
These are just a few of the many estate planning trusts to consider. If you learn more about each one, you’ll find it much easier to make an informed decision as to what your estate plan should look like in the future.