Trusts come in many shapes and sizes, and protect various aspects of people's lives. It is always best to create them early and maintain them regularly. Find out which trusts are best for you or your family.
Revocable Living Trusts
A revocable living trust is not only a way for you to determine who will get your property and belongings after you pass away, but it also allows for a smooth transition when the time comes by avoiding probate. At Seamon Law Offices, we call a revocable living trust a “bucket.” See why.
An irrevocable trust allows you to appoint someone else to be your trustee while you are living. Think of an irrevocable trust like a lockbox, and you gave your trustee the only key. This person is someone you trust, and they must follow your instructions to manage your trust. Watch this video to learn more about the “box.”
Special/Supplemental Needs Trust
If you or a loved one has a physical or mental disability, creating a supplemental needs trust (also known as a special needs trust) provides the most opportunities and flexibility. A supplemental needs trust is written so that a person with a disability can still receive certain governmental benefits like Medicaid, subsidized housing, or Supplemental Security Income, even if he or she is left an inheritance from a family member. The money in the trust is used to supplement the government benefits.
When someone passes away, a trust administrator supervises the successor trustee as he or she divides everything and distributes it according to the document in place. This process must adhere to the state laws and tax regulations.
A retirement trust is an excellent way to protect your assets for your beneficiaries. It prevents beneficiaries from cashing out accounts such as IRAs (Individual Retirement Accounts) prematurely and incurring expensive taxes, and maybe even penalties. Seamon Law Offices can properly create your retirement trust to provide your beneficiaries with an income source, similar to a pension, for the rest of their lives, and also protect them from creditors or divorces.