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Other Types of Trusts
Specialized trusts are available for a variety of needs. Many are irrevocable (unchangeable) trusts that help reduce estates to minimize potential federal estate taxes. Examples include life insurance trusts (for large life insurance policies); charitable remainder trusts (for donations to charities), and qualified personal residence trusts (for a primary residence and one vacation home). Other types of trusts enable people to ensure care for dependents. These include trusts for minors and special needs trusts for people receiving disability benefits.
Life insurance trusts help exclude the proceeds of a life insurance policy from the taxable estate of the insured. For larger estates, a life insurance trust can be a useful tool to reduce federal estate taxes. These trusts can use life insurance proceeds to pay estate taxes and other obligations.
Charitable remainder trusts are useful for people who would
QPRTs are irrevocable trusts in which the settlor retains the interest in his or her personal residence or vacation property for a term of years. The remaining interest in the property passes to the beneficiaries. The settlor retains ownership of the real property until the term expires or until he or she passes away.
Transfers to minors may reduce the estate taxes of a donor by eliminating future appreciation of a gift from the donor’s estate. Trusts for minors allow for the prolonged management of assets transferred to a minor. Depending upon the wishes of the settlor, the duration of the asset management and the distribution amounts will vary.
Special needs trusts allow for a disabled or aged beneficiary of a trust to keep his or her government benefits while receiving funds from a trust.
This is a type of trust used for married people when one
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The Law Offices of Laurie Shigekuni Office Locations::
951 Mariners Island Blvd Suite 300 San Mateo, CA 94404 225 S. Lake Ave. Suite 300 Pasadena, CA 91101 (800) 417-5250 Fax: (415) 584-4553 |
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