Part 1 of a 2-Part Series
With the myriad of trusts available, many find the task of creating the right estate plan daunting. However, as estate planning attorneys, we do this every day. We know the ins and outs of estate law and will design a plan which perfectly addresses your specific situation. This week, we begin a two-part series, examining the top 10 types of trusts. This week, we will cover 1-5. Next week, we will conclude by focusing on 6-10.
Considering the 10 most common trusts will provide you with a general understanding of available options. Don’t worry; we won’t quiz you at the end. But, when we meet, this should prepare you to share goals and insight about your family and financial situation. And we will work with you to design a plan that incorporates the right documents for your situation.
Bypass Trusts
Commonly referred to as a credit shelter trust, family trust, or B trust, a bypass trust contains a portion of a deceased spouse’s accounts and property and uses the deceased spouse’s lifetime exclusion amount to reduce or eliminate estate tax. Because the estate tax is calculated at the first spouse’s death, this trust is bypassed for estate tax purposes at the second spouse’s death.
Charitable Lead Trusts
A charitable lead trust is a trust which provides a stream of income to a charity of your choice for a period of years or a lifetime. Thus, at the completion of the period of years, or at death, whatever is left goes to you or your loved ones with significant tax savings.
Charitable Remainder Trust
A charitable remainder trust is a trust which provides a stream of income to you for a period of years or a lifetime and then gives the remainder to the charity of your choice with significant tax savings once the period of years or death has occurred.
Special Needs Trust
A special needs trust allows you to provide money or property. You do this for the benefit of someone with special needs without disqualifying them from receiving governmental benefits. Federal laws allow special needs beneficiaries to receive certain types of benefits. So, these do not defeat government eligibility benefits.
Generation-Skipping Trusts
A generation-skipping trusts allows you to distribute your money and property to your grandchildren. Or even to later generations, without taxation, by using your lifetime exemption to offset any tax that could be due.
Check back next week, when we conclude this two-part series, covering the last 5 of the top 10 most common types of trusts.
About Skvarna Law in Glendora and Upland, California
Skvarna Law Firm operates offices in Glendora and Upland, California. We provide legal services. We cover San Bernardino, Los Angeles, Orange and Riverside Counties. This includes several cities. Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
