The estate planning process has various components. One of the most important involves trusts. If you would like to learn more about the different types of trusts in Pennsylvania, keep reading and contact our firm to speak with our skilled estate planning attorneys.
What is a trust in Pennsylvania?
A trust is an agreement that authorizes a person to select a trustee and provide them with the opportunity to take care of their assets until the beneficiary inherits them. It is essential to note that the individual who creates a trust is known as a trustor. The person who inherits the assets within the trust is known as a beneficiary. A third party’s objective is to manage the trust on account of the beneficiary.
What are the different types of trusts I can create?
In Pennsylvania, it is understood that everyone comes from different circumstances. Because of this, there are many types of trusts that adjust to individuals and their unique situations. Some of the most common trusts that are possible in Pennsylvania include the following:
- Revocable Trust: This kind of trust is one of the most commonly chosen by trustors because it has the ability to be modified, changed, or terminated at any moment without the need for the beneficiary’s permission.
- Irrevocable Trust: This type of trust requires a trustor to give up their rights and any access to the trust at the time that it is produced. This implies they cannot change or terminate it at any point.
- Irrevocable Life Insurance Trust: This kind of trust enables a trustor to remove their life insurance from the estate plan so that their beneficiaries are free from any taxes that are put on it.
- Charitable Trust: There are two different types of charitable trusts. A charitable trust allows the individual’s choice of charity to gain interest from the financial gift for a specific period of time. When the period terminates, the remaining assets may go to other beneficiaries. A charitable remainder trust allows charities to receive the assets in a trust at the end of its term. Until then, the donor sustains interest in the gift.
- Special Needs Trust: This refers to when a loved one with a disability is chosen by a trustor to make sure they receive the financial support they need throughout their life.
Do not hesitate to contact our skilled estate planning firm, if you have questions or concerns about the different types of trusts. Our firm is equipped with the experience and knowledge needed to ensure that you and your family’s future are protected. Give us a call today to speak with one of our seasoned estate planning attorneys.
CONTACT OUR EXPERIENCED PENNSYLVANIA FIRM
Friedman Schuman is an experienced and dedicated legal resource for clients throughout Pennsylvania. We proudly serve clients facing a wide range of legal matters. If you require the services of an effective attorney, please contact Friedman Schuman today to schedule a consultation.