The 5 Types of Trusts

In this issue of the DiGiorgio Law Firm, PLLC Estate Planning Newsletter we are turning our estate planning spotlight on 5 Types of Trusts.

  1. Revocable Living Trusts. Retain complete control over your assets while enjoying the following benefits:
  • Reduced Costs: Eliminate many of the costs associated with the probate of wills or the administration of estates without wills, especially if you own real estate in more than one state.
  • Reduce Delays: Court supervised Probate and Administration Proceeds typically take considerably more time than it takes to effect distribution from a Trust, thus allowing your heirs quicker access to needed funds.
  • Reduce the risk of litigation: Probate and Administration proceedings require that your heirs at law be given notice of the proceedings even if they are not your intended beneficiaries. Such notice requirements do not pertain to Trusts.
  • Planning for Incapacity: Put a plan and a trustee in place to provide for you, your family and the management of your assets in the event of incapacity.
  1. Medicaid Asset Protection Trusts:
  • Shelter assets and obtain access to Medicaid for home care.
  • Shelter assets and obtain access to Medicaid for institutional (nursing home) care.
  • Avoid probate.
  • Medicaid Trusts may offer significant tax advantages over outright gifts.
  1. Supplemental Needs Trusts:
  • Create a Trust with your assets for a loved one with special needs without risking the loss of their public benefits. Learn more about these Trusts known as Third Party Supplemental Needs Trusts at one of our free workshops.
  • Create a Trust with the assets of a loved one with special needs without risking the loss of their special benefits. Learn more about these Trusts known as First Party Supplemental Needs Trusts at one of our free workshops.
  1. Irrevocable Life Insurance Trusts:
  • Exclude life insurance from your taxable estate for federal and New York State Estate Tax purposes.
  • Protect the proceeds of these policies from the creditors of your beneficiaries
  • Avoid the need for the appointment of a guardian for minors and incapacitated beneficiaries.
  1. Charitable Remainder Trusts:
  • Achieve your charitable objectives in a cost and tax efficient manner.
  • Provide an income stream for yourself and or other individual beneficiaries.
  • Obtain a deduction for Estate Tax purposes
  • Defer and or reduce capital gains taxes