One of the greatest advantages of estate planning is that it is entirely customizable to suit your needs. But in order to take advantage of everything that the process has to offer, you have to know your estate planning options.
Sure, you have the ability to create a simple will, but that might not give you, your assets, and your loved ones the protection that you want. Therefore, you may want to consider your options when it comes to creating a trust.
What types of trusts are available to you?
There are many trust options to choose from. They include:
- Incentive trusts allow you to motivate a loved one to achieve a certain goal by conditioning the release of trust assets on the completion of a triggering event
- Spendthrift trusts limit a beneficiary’s access to trust assets so that those assets last longer and aren’t misused
- Special needs trusts that allow you to support an individual with medical needs in a way that allows them to still qualify for Medicaid
- Charitable trusts that can give back to the causes that you care about most
- Remainder trusts that provide for a named beneficiary for a certain period of time and leave the remainder of the trust’s assets to someone else, which may be especially helpful in blended families or in situations where you want to be charitable
- Generation-skipping trusts, where you give assets directly to your grandchildren, which can alleviate your estate taxes while still helping out your children and grandchildren
Know how to create the plan that is right for you
A lot of people who start the estate planning process find themselves overwhelmed by the choices that they have to make. But try not to be stressed into inaction. Instead, consider what you need to be successful in this endeavor. After all, do you want to leave your assets and your loved ones at risk?