If you own a home, business, or investments, there is a good chance that you will need a trust to protect your wealth. Because individual needs vary, it is almost impossible to approach trust creation from a one-size-fits-all perspective. Instead, your individual needs, personal goals, familial circumstances, and finances must be considered as a whole to tailor your estate plan to you. You may find yourself asking, “what type of trust do I need?” A mind-boggling variety of trusts exist to accommodate individual needs and goals. The most common types of trusts include:

Revocable Living Trust

This type of trust allows the grantor (the person creating the trust) to maintain control over the assets during their lifetime. They can modify or revoke the trust at any time. It is often used to avoid probate, provide continuity of asset management, and maintain privacy.

Irrevocable Living Trust

Unlike a revocable trust, once an irrevocable trust is established, the grantor cannot modify or revoke it without the consent of the beneficiaries. It offers potential tax benefits, creditor protection, and can help in Medicaid planning.

Testamentary Trust

This trust is created through a person's last will and testament and only takes effect after the person's death. It is often used to provide for the financial needs of minor children or beneficiaries with special needs.

Charitable Trust

As the name suggests, this type of trust is established for charitable purposes. It allows individuals to donate assets to a charitable organization, receive potential tax benefits, and support causes they care about.

Special Needs Trust (SNT)

An SNT is designed to benefit individuals with disabilities without jeopardizing their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI).

Spendthrift Trust

This trust protects beneficiaries from creditors and themselves. It restricts the beneficiary's access to the trust assets, and creditors typically cannot make claims against the trust until the assets are distributed to the beneficiary.

Marital Trust (A/B Trust or QTIP Trust)

These trusts are used in estate planning to minimize estate taxes when passing assets to a surviving spouse.

Grantor Retained Annuity Trust (GRAT) and Grantor Retained Unitrust (GRUT)

These trusts allow the grantor to pass appreciation on assets to beneficiaries while retaining an income stream for a specific period.

We can help you determine the most suitable trust or combination of trusts to achieve your financial and family objectives. (Keep in mind that laws and regulations related to trusts may vary between states, so it's essential to consult a legal professional before creating a trust.)

Call the Whipple Law Group, PLLC, today at (509) 869-3223, to discuss how a Trust might benefit you and your family.