Types of Trusts
There a variety of trusts. Which instrument, or instruments, are applicable to you depend on the specifics of your circumstances.
Attorney Patrick has the experience to help you establish and implement your estate planning goals.
Some common trust types include:
Intervivos (Revocable/Living) Trust
The revocable trust has many benefits appealing to a range of individual circumstances. At its most basic level, the revocable trust can be used to avoid probate. With this tool, your family maintains control and your affairs remain private in addition to the time and money they will save.
Supplemental (Special) Needs Trust
If you have a future beneficiary who is physically or mentally disabled, you must be proactive to protect their inheritance. The special needs trust structure increases the probability that an inheritance will not disrupt government benefits for your loved one.
Single or married, the charitable trust structure can be used to reduce a potential estate tax to zero. This is an advanced estate planning tool used for tax planning. If an individual without estate tax considerations would like to give to a charity, they can do so with a will or trust.
Pets provide love and affection during our lives. When we pass, we want to assure that their friendship is rewarded. The pet trust is simply a sub trust which allocates resources for the well being of a pet. Legal in Michigan, all pet trusts must have an ultimate beneficiary for any monies that may be left after the pet has passed on.
Irrevocable Life Insurance Trust (ILIT)
When estate tax can not be avoided, the ILIT can be used to hold insurance policies which will pay for some or all of the expected estate tax due.
In effort to reduce estate taxes and provide asset protection an irrevocable trust can be a useful tool. Unlike the revocable trust, you give up control of assets titled in the name of the irrevocable trust.
Qualified Personal Residence Trust (QPRT)
The QPRT structure can be a useful for reducing estate taxes and creditor protection depending on your circumstances.
Family Limited Partnerships (FLP)
A variation of the limited partnership used commonly in business matters, the FLP structure can be used to reduce or eliminate estate taxes and protect assets from creditors.
