If you are trying to find out exactly what does a trust cover, you have come to the right trust attorney here at Reinfeld & Cabrera, P.A. to find the answer to what you are looking for. Trusts are flexible, varied and complex and can be useful estate-planning tools for you and your family. With the guidance of a trust attorney you will realize that a trust is able to cover a myriad of things.
A considerable amount of your assets in real estate, a business or an art collection are just a few things covered by a trust. One of the biggest advantages of a trust is that it is able to provide you with the ability to put conditions on how and when your assets are distributed after you die. You may decide to have your estate distributed to your heirs in a non-direct or delayed method and not in a way that is immediately payable. Working with an experienced trust attorney you can ensure that your trust will be able to accommodate such things. Perhaps you want to ensure the continual support of your surviving spouse, but also want you to make certain that the principal or remainder of your estate goes to your chosen heirs after your spouse dies. Trusts can assist in reducing estate and gift taxes and distribute assets to heirs efficiently while avoiding probate court. Together with the advice of your trust attorney you and your spouse will be able to maximize your estate-tax exemptions through the use of a trust. Another area covered by a trust is in providing for a disabled relative without disqualifying him or her from Medicaid or other government assistance. Furthermore a trust will better protect your assets from creditors and lawsuits.
There are five standard forms of trusts. The credit-shelter trust allows you to write a will bestowing an amount to the trust up to but not exceeding the estate-tax exemption. The generation-skipping trust permits you to pass on a sizeable amount of cash tax-free to beneficiaries who are at least two generations your junior. A qualified personal residence trust allows you bestow your home as a gift while you keep control of it for a stipulated period of time. The irrevocable life insurance trust could work to remove your life insurance from your taxable estate, help pay estate costs, and provide your heirs with cash for a variety of purposes. Lastly, a qualified terminable interest property trust allows you to direct your assets to particular relatives especially if your family contains divorces, remarriages and stepchildren.
Each type of trust has advantages and disadvantages. It is important that you discuss these advantages and disadvantages thoroughly with your trust attorney before setting up your trust. Do not hesitate to contact a probate attorney from Reinfeld & Cabrera, P.A. to discuss setting up the best trust that suits you and covers your needs.