Are you considering creating a trust for your children or grandchildren? Before you dive deeper into our article about the different kinds of trusts, check out Starting A Trust. If you’ve already decided to create a trust, or you want more information, Ores Law is able to help you. We are a law firm located in Loveland, CO, and service the surrounding areas. If you are looking for an estate planning attorney to help you with your trust, then contact us today.
Two Living Trusts
Revocable Trusts
A type of living trusts that allows you to maintain control of all the assets of your trust. You are free to change or overrule the trust terms at any point.
Irrevocable Trusts
A type of living trust. The assets are no longer yours, and you are not allowed to make changes without the beneficiary’s permission. The appreciated assets in the trust are not taxable for estate taxes.
Trusts That Are More Complicated
Credit Shelter Trusts Or Family Trust
You create a will bequeathing an amount of money to a trust that is below the estate tax exceeding exemptions. Once that is done, you are able to pass the estate to your spouse tax-free. Once this trust is in place, it is free of estate tax forever.
Generation-Skipping Trusts Or Dynasty Trust
A trust that skips at least two generations, which usually means grandchildren. A dynasty trust or a generation-skipping trust admits you to transfer money tax-free to the beneficiaries.
Qualified Personal Residence Trusts
This trust is helpful if your home is going to appreciate in value. This trust removes the value of your home from your estate.
Irrevocable Life Insurance Trusts
Your life insurance can be removed from your taxable estate to help pay estate costs, as well as provide heirs with cash.
Qualified Terminable Interest Property Trusts
This trust is for families that have had divorces, stepchildren, and remarriages. The surviving spouse will gain the income from the trust, and the beneficiaries will receive the remainder of the income from the trust.
For more information about trust law, or if you want to contact a trusts lawyer call us to make an appointment.