In recent years, many individuals have selected the use of a Trust for the purpose of transferring property for a variety of reasons. There are essentially two types of Trusts. The first is an Irrevocable Trust which provides for the transfer of property to a Trustee and limits a Grantors* ability to have future access to property transferred to the Trust.
The other type of Trust is a Revocable Trust which also provides for the transfer of ownership of property, but allows the Grantor a greater level of discretion with regard to the utilization of the assets and income produced by the Trust.
There are several types of Trusts that fall into either of these two categories, such as a Living Trust, Nominee Trust, Insurance Trust, Charitable Trust, Family Trust, Realty Trust and Special Needs Trust.
The type of Trust that will be best suited for you should be developed by taking into account your needs, your spouse’s needs and the needs of other family members as they may relate to your entire estate. Trusts are a valuable Estate Planning tool because it allows you to avoid the probate process, which ensures the confidentiality of your information and ensures more timely access to the assets of your estate.
*Grantor/Settlor is defined as the individual creating the Trust and making the initial transfer of property to the Trust.