Along with a will a trust is an important estate planning tool that may help you meet your estate planning goals. While a trust should not be used instead of a will, you should consider creating a trust in addition to a will as trusts provide benefits and features that a will does not. However, because setting up a trust can be complex, it is important to work with Estate Attorneys in New Orleans to make sure that your trust is set up according to the legal requirements.
A trust is a legal entity that holds assets for the benefit of another person. It is managed by a fiduciary known as the trustee who makes decisions as to how to manage the trust assets to benefit the trust beneficiaries, according to the terms of the trust agreement. As trusts can be complicated, consider consulting Estate Attorneys in New Orleans who will be able to explain to you the benefits of a trust and how one might help you and the beneficiaries of your choosing.
Types of Trust Arrangements
Trusts can be set up to provide for loved ones who have special issues, to provide for minors, to provide for a cause that is important to you, or for a number of other personal or financial reasons. In order for a trust be effective it is important to work with Estate Attorneys in New Orleans who will set up your trust according to legal requirements.
Special Needs Trust
A special needs trust (SNT) is a unique type of trust that is typically established by parents or grandparents for the benefit of a child who has a disability.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
If you want to leave a sum of money or an asset to help a particular cause, you can do so through a charitable trust. There are several types of charitable trusts, each with different income and estate tax benefits. Estate attorneys in New Orleans will be able to advise you as to which type of charitable trust will best meet your personal and financial goals.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you have an adult child who has a track record of making poor financial decisions, yet you would like to leave that child assets, consider setting up a spendthrift trust. With a spendthrift trust the beneficiary will not have direct access to its funds. However, per the terms of the trust agreement the trustee will have authority to spend the trust assets for the benefit of the trust beneficiary.
In addition to providing for the specialized needs of your loved ones or a charitable cause, trusts can provide you income and estate tax benefits. To learn more about trusts, contact experienced Estate Attorneys in New Orleans at Barrios Kingsdorf & Casteix LLP.
A trust is a legal entity that holds assets for the benefit of another person. It is managed by a fiduciary known as the trustee who makes decisions as to how to manage the trust assets to benefit the trust beneficiaries, according to the terms of the trust agreement. As trusts can be complicated, consider consulting Estate Attorneys in New Orleans who will be able to explain to you the benefits of a trust and how one might help you and the beneficiaries of your choosing.
Types of Trust Arrangements
Trusts can be set up to provide for loved ones who have special issues, to provide for minors, to provide for a cause that is important to you, or for a number of other personal or financial reasons. In order for a trust be effective it is important to work with Estate Attorneys in New Orleans who will set up your trust according to legal requirements.
Special Needs Trust
A special needs trust (SNT) is a unique type of trust that is typically established by parents or grandparents for the benefit of a child who has a disability.
A SNT trust is designed to allow the beneficiary to use the funds placed in the trust without jeopardizing his or her eligibility for need-based government benefits such as Medicaid or Social Security. The funds that you place in the SNT can only be used for specific expenses such as therapy, education, and accessible vehicles.
Charitable Trust
If you want to leave a sum of money or an asset to help a particular cause, you can do so through a charitable trust. There are several types of charitable trusts, each with different income and estate tax benefits. Estate attorneys in New Orleans will be able to advise you as to which type of charitable trust will best meet your personal and financial goals.
Minor Children Trust
Even if you leave your minor children outright gifts, someone else will have to manage those funds or assets until your children reach the age of majority. Thus, it is best to simply set up a trust either while you are living or through your will so that you can set forth the terms of how you would like your children's assets managed and who you want to manage them. In the trust agreement you can specify at what age you would like your children to have outright access to the funds, commonly at the age of 18 or 21.
Spendthrift Trust
If you have an adult child who has a track record of making poor financial decisions, yet you would like to leave that child assets, consider setting up a spendthrift trust. With a spendthrift trust the beneficiary will not have direct access to its funds. However, per the terms of the trust agreement the trustee will have authority to spend the trust assets for the benefit of the trust beneficiary.
In addition to providing for the specialized needs of your loved ones or a charitable cause, trusts can provide you income and estate tax benefits. To learn more about trusts, contact experienced Estate Attorneys in New Orleans at Barrios Kingsdorf & Casteix LLP.
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If you need assistance from New Orleans estate lawyers, Barrios Kingsdorf & Casteix, L.L.P. can help. Contact us today to schedule a consultation with an experienced New Orleans Probate Administration Attorneys.
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