The testamentary trust is one of the most useful types of trusts, providing many advantages to the grantor. Unlike a living trust that is created during the lifetime of the grantor, a testamentary trust is created in a will and goes into effect upon the death of the grantor. This can preserve assets and give the decedent some measure of control over them, even after he or she has passed away. There are many different types of testamentary trusts, which may be used to fit your specific estate planning goals.
It is well recognized that giving a child significant money at an early age is not good for them. However, it is ordinarily difficult to prevent a child beneficiary getting their hands on an asset when they reach 18. A testamentary trust can provide a high level of control and certainty as to when your children gain access to particular assets – and for what purpose. It is possible to stagger the gifting of your assets over time (for example, when your children reach 21, 25, 30, etc), or to tie the release of your assets to particular events or uses. For example, it is possible to tie a gift to the purchase of a house, education or overseas travel.
Likewise, if you have a child or care for an adult with special needs, you need special planning. A special needs trust can belp preseve your child’s elegibility for public benefits while providing for supplemental needs that will enhance his or her life.
If you desire to maintain a firm control over how assets are released to and can be used by your beneficiary, a spendthrift trust is a great option to include in your estate plan. A spendthrift trust is a trust created for the benefit of a beneficiary that prohibits the beneficiary from selling, giving away or otherwise transferring his or her interest in the trust assets, and prevents the beneficiary’s creditors from reaching the beneficiary’s interest in the trust.
And for those of you who need to provide for beloved pets, The Law Office of Anne Marie Sibal will work with you to ensure that they are provided for in a detailed pet trust.
There are numerous reasons to consider various trusts including ensuring your loved ones are cared for financially. Because of the intricacies involved in setting up these trusts it is important for you to work closely with an attorney who understands trust documents and the limitations of trust agreements. At The Law Office of Anne Marie Sibal, we can discuss the various options that are available to you and help you decide if a trust is the right option for your needs. Call us today at (864) 416-1332 or use our online contact form to get more information and we can help you prepare your testamentary trust.