You probably understand why it is important to have an estate plan in place. This step can allow you to protect the interests of your loved ones, decide what will happen to your stuff and even plan for your own health care in the future. For many, they can accomplish their estate planning goals by drafting a thoughtful will.
While a will can provide many benefits and types of protection, you may need more than a will to get the full amount of protection you need. You may benefit from establishing a trust. This is a specific type of estate planning tool that allows you to set aside and protect assets for a specific purpose. You may want to consider whether this may be a smart addition to your estate plans.
What type of trust is right for you?
There are various different types of trusts, and they each offer you a way to accomplish a specific goal. As with all major decisions related to your finances and your estate, it is smart to carefully consider your options before moving forward. It is in your interests to know the benefits of the specific trust you chose and any potential drawbacks you may encounter in the future. Examples of types of trusts include the following:
- Charitable trust – If you feel passionately about charitable giving and want to be certain that a portion of your estate goes to a specific organization, this is the option for you. There are financial benefits attached to this type of trust.
- Special needs trust – This is an option for individuals who, after their death, want to care for a special needs loved one. The money and assets in this type of trust will not affect eligibility for government benefits.
- Asset protection trust – When you place assets in this type of trust, they have protection from creditors who may be trying to collect money from you or your estate in the future.
A person establishes a trust in his or her lifetime, and it goes into effect after that person's death. With most types of trusts, you can retain control and manage trusts assets during your lifetime.
Learn about the tools that will benefit you
It is smart to learn about all of the estate planning options that are available to you. When it comes to your own protection and the well-being of your loved ones, you will find it helpful to seek the experienced guidance of a Pennsylvania attorney who can help you make the best choices for your future.