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August 15, 2014 Posted In Probate, Estate, & Trust Administration,Trust Administration,Trusts
by Colorado Estate Matters
Here is the conclusion to our three-part blog 8 Different Types of Trusts: An Overview.
When you are ready to talk about estate planning, our Denver trusts lawyers can help you determine which types of trusts may be the best choices for you and your family.
With these types of trusts, people can provide specific financial protection for their loved ones with special needs (including both physical and mental impairments) for years to come. Special needs trusts are particularly beneficial when people want to:
By setting up special needs trusts, people can ensure that their loved ones have the financial support they may need to pay for things like in-home care, special equipment, living expenses, recreational activities, etc. (none of which may be covered by the very limited government benefits a person may receive).
One of the key elements of special needs trusts (which can be set up by trustmakers prior to passing or can be set up by people with special needs after they have received some inheritance) is that the individual with special needs is NOT named as the trustee of the trust (i.e., that the person with special needs does not control the assets and business of the trust).
With these types of trusts, a trustmaker can effectively prevent a beneficiary (or multiple beneficiaries) from being able to sell off or somehow “lose” the assets of the trust. While spendthrift trusts may be smart to set up when a trustmaker expects that a beneficiary may have creditors coming after him in the future, these types of trusts may also be an effective way to protect certain assets when a beneficiary is known to have an addiction problem (like a spending, gambling and/or drug addiction).
When spendthrift trusts are set up, the trustmaker can devise terms for how long this trust will remain in effect, as well as terms that stipulate if or when the beneficiary may have the right to sell certain assets of the trust
When one spouse would like to leave money to a surviving spouse (or any surviving family members), these types of trusts can be an effective way to limit the federal estate taxes that would apply to that money.
Depending on the value of an estate and the amount of money that a trustmaker would like to leave to his surviving beneficiaries, setting up tax bypass trusts can save beneficiaries thousands or even hundreds of thousands of dollars upon the trustmaker’s passing.
When you are ready to set up a trust and proceed with estate planning for your future, you can turn to the trust lawyers at Colorado Estate Matters, Ltd. We are skilled at using a variety of traditional and innovative approaches to develop solutions that are perfectly tailored to our clients’ needs and objectives.
Our goal is to help our clients efficiently navigate the complexities of the law so they can develop effective, prudent solutions that will protect them, their assets and their families in the future.
We can discuss your estate planning needs and different options during our consultation. To schedule this meeting, call us at (303) 713-9147 or email us using the contact form at the top of this page.
From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village, Englewood, Centennial, Wheat Ridge, Golden and Arvada.