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What kinds of trusts are there?

Everyone will pass away eventually, and because of that, looking into your estate planning options early is something you may need to do. If you're considering creating a trust, you may be overwhelmed by the options. Your attorney can help you open any one of a number of trusts, but you first need to know what kinds are available.

What types of trusts are there?

One is known as a revocable trust, which can be changed, revoked or altered while the trustmaker is alive. This is also known as a living trust. Another kind is called an irrevocable trust. As its name suggests, it can't be revoked after being created.

An asset protection trust is designed to protect your assets from claims by future creditors. These trusts typically live in a foreign jurisdiction where they are insulated against claims.

For those who want to make charitable contributions, a charitable trust can be a good choice. It is one where you, as a benefactor, choose a particular charity or the public as a beneficiary. These trusts can help you reduce estate and gift taxes; in some cases they eliminate them completely.

Are there any special trusts for children or adults with special needs?

Yes, a special needs trust can be set up to pay out to a person with special needs without impacting that person's right to governmental benefits. As long as the disabled person can't control when he or she receives the money or at what intervals, then this is completely legal under United States law.

These are just a few of the main trusts available today. There are others for varied circumstances that you may be interested in as well.

Source: FindLaw, "Types of Trusts," accessed Dec. 29, 2016

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