Creating an estate plan is a very personal experience. Many Massachusetts residents may even think that they can put off planning until they’re older or that it is something that they do not need to go through at all. However, this type of thinking is not always the best, and really, anyone can benefit from getting their wishes in order.
In particular, you may want to think about creating a trust to help you get your final affairs squared away. Like many people, you may think that trusts are only for individuals with a considerable amount of wealth, but that is not the case. People at various asset levels could benefit from having trusts, but because everyone has different planning needs, you could choose from various types of trusts.
Types of trusts
When some people think of types of trusts, they think about revocable and irrevocable trusts, but that is not the extent of the matter. Certainly, understanding these types is important because a revocable trust allows you to stay in control over your assets and allows you to make changes to the trust, while an irrevocable trust does not. Still, you may want to look into more specific types of trusts that could suit your needs, such as:
- Irrevocable life insurance trust: This type of trust allows proceeds from a life insurance policy to go into the trust and not count as part of the taxable estate.
- Generation-skipping trust: If you do not wish to leave assets to your children but do want to leave assets for your grandchildren, this type of trust could allow you to do so without facing generation-skipping taxes.
- Charitable lead trust: This type of trust can allow you to contribute certain assets to charity while the rest passes on to your beneficiaries.
- Marital trust: This trust can ensure that assets pass to your surviving spouse, but the assets typically remain part of the taxable estate of the spouse.
Of course, these examples are only a few of the many types of trusts that could benefit you and your family. If you are interested in finding a trust that best suits your needs, you may want to utilize local legal resources to gain reliable information about your available options. An experienced attorney could go over your wishes and help you make an informed decision.