On August 10, 2014

Picking up where we left off in 8 Different Types of Trusts: An Overview (Pt. 1), below we will continue our discussion of some of the specific benefits of various types of trusts.

More Common Types of Trusts…

The most appropriate types of trusts to set up will depend on a person’s assets, the chosen beneficiaries, etc. Let’s discuss the best trust options for your estate planning needs.

The most appropriate types of trusts to set up will depend on a person’s assets, the chosen beneficiaries, etc. Let’s discuss the best trust options for your estate planning needs.

3. Charitable Trusts

With these types of trusts, a trustmaker can essentially leave some asset to a chosen charity (or a few different charities). While charitable trusts can be a rewarding way to give back to the community or financially assist a certain cause, they can also financially benefit the trustmaker (and his beneficiaries) in that these trusts come with various estate and gift tax incentives.

4. Asset Protection Trusts

These types of trusts may be powerful estate planning tools when a trustmaker wants to ensure that his assets are protected from future creditors. While the terms of these trusts can be developed in any way that benefits the trustmaker, in general, asset protection trusts are created to be irrevocable trusts that name someone other than the trustmaker as the beneficiary.

Additionally, these types of trusts typically remain in effect until the threat of creditors seizing an individual’s assets is no longer relevant. In other words, the terms of asset protection trusts usually stipulate that:

  • These trusts will remain in effect for a specific amount of time (or after a specific condition has been met).
  • After that period (or the stated condition has been satisfied), the assets of the trust will be transferred back to the trustmaker.

Given these aspects of asset protection trusts, these types of trusts are typically the most beneficial to people who may be facing impending punitive action from creditors (i.e., people in serious debt).

5. Implied (or Constructive) Trusts

These types of trusts are generally set up by courts when there are sufficient facts and evidence to reasonably assume that a decedent intended for some property or assets to be placed in a trust but that the decedent never actually got around to setting up a formal trust.

Don’t miss the final part of this blog for the conclusion of our discussion on different types of trusts.

Denver Trust Attorneys at JR Phillips & Associates, PC

When you are ready to set up a trust and proceed with estate planning for your future, you can turn to the trust lawyers at JR Phillips & Associates, PC. We provide a thoughtful, comprehensive approach to our clients’ estate planning, elder law and other legal needs, and we take pride in helping each of our clients and their families find the best solutions for them.

While this means that we provide personalized attention at every step of the process, it also means that our clients can rely on our Denver trust attorneys to always be competent, caring and professional while providing them with the highest quality of estate planning services at affordable rates.

Let’s Talk about Your Estate Planning Needs – Contact Us Today

Let’s discuss your options during an initial consultation. To schedule this meeting, call us at (303) 741-2400 or email us using the contact form at the top of this page.

From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village and Englewood.

Categories: Trust Administration, Trusts