Types of Trusts Available
Trusts are legal arrangements that allow you to transfer ownership of your assets to a trustee, who will manage and distribute them according to your wishes.
At their core, trusts are either revocable, allowing the grantor to alter them during their lifetime, or irrevocable, which, once established, cannot be changed. Each serves different objectives and offers varying levels of control and protection. Trusts can be used for a variety of purposes, such as:
- Trusts can help you to avoid probate, reduce estate taxes, and distribute your assets to your beneficiaries in a controlled manner.
- Trusts can help to protect your assets from creditors and lawsuits.
- Trusts can be used to provide for a disabled child or adult without disqualifying them from government benefits.
- Trusts can be used to establish a charitable foundation or to make a gift to a specific charity.
Thomas N. Scheffel & Associates, P.C., situated at the heart of estate planning in Denver, is dedicated to helping you navigate this intricate landscape. Trusts are not one-size-fits-all; they are as diverse as the individuals who use them. Some of the most common types of trusts include…
Living trusts are active during the grantor’s life, aiding in the management of assets and offering a seamless transfer of wealth upon their passing. They are instrumental in avoiding probate—a public and often lengthy process—as they provide for a private and efficient transfer of assets
Contrasting living trusts, testamentary trusts take effect after death, often delineated within a will. These are particularly beneficial for individuals who wish to set conditions on asset distribution, such as age-based milestones for beneficiaries.
Charitable trusts, such as the Charitable Remainder Trust in Cherry Creek, enable individuals to support charitable causes while also providing tax benefits. They can serve as a testament to one’s philanthropic legacy, offering both immediate and deferred charitable gifts.
Special Needs Trusts
These trusts ensure that beneficiaries with disabilities can receive inheritance without affecting their eligibility for government aid. A compassionate approach to estate planning, they safeguard the financial future of the most vulnerable members of our society.
Irrevocable Life Insurance Trusts
An Irrevocable Life Insurance Trust (ILIT) in Cherry Creek, is a specialized vehicle that holds and manages life insurance policies outside of the estate, thus potentially reducing estate taxes and offering more control over policy benefits.
Powers of Attorney: A Complementary Tool
Trusts often work in tandem with powers of attorney. A power of attorney in Cherry Creek, whether for finances or a medical power of attorney, designates an individual to make crucial decisions when one is incapacitated, ensuring that preferences in medical care and asset management are respected.
Your Next Steps
Thomas N. Scheffel & Associates, P.C. understands the nuances of trusts, estate planning, and the implications of each choice. Whether you’re considering a trust as part of your estate planning, facing probate administration in Denver, or needing assistance with asset planning, our doors are open.
A plan today can secure a legacy tomorrow. Don’t leave your future to chance; let us assist you in crafting a blueprint that reflects your wishes and protects your loved ones. Contact us for a consultation and take that step towards a secure future.