A Trust is a type of contract. The parties to the Trust include the Grantor, who places the money or other assets into the Trust; the Trustee, who is the person who manages the assets in the Trust; and the Beneficiary, who receives distributions from the Trustee pursuant to the terms of the Trust.
A Grantor can create a Revocable Trust in which he or she can maintain complete control and access to his or her funds during his or her lifetime. A Revocable Trust can then provide the terms of who will receive the contents of the trust at death. Revocable Trusts are often used interchangeably with a Will.
A Revocable Trust can be changed at any time during the Grantor's lifetime. Usually, a Revocable Trust becomes irrevocable at the time of the Grantor's death. In certain situations it may be possible to "decant" to change or revoke the trust after death.
A Revocable Trust does not provide tax benefits, A transfer of assets into a Revocable Trust does not provide any beneficial change of ownerships since the Grantor typically retains control of all assets during his or her lifetime.
An Irrevocable Trust is usually established when the Grantor wants to remove assets from his or her estate in order to engage in estate planning, asset protection, creditor protection, Medicaid planning or taking advantage of the annual gift tax exclusion.
The Grantor cannot act as the Trustee of his or her Irrevocable Trust.
Irrevocable trusts include Medicaid Qualifying Trusts, Life Insurance Trusts, Qualified Personal Residence Trusts, Charitable Lead Trusts or Charitable Remainder Trusts.
Many pet owners want to ensure that their pets will be cared fro in the event that the owner passes away or becomes incapacitated. Pet owners often feel that it their responsibility to provide for their pets' costs.
In a Pet Trust the pet owner can identify a caretaker to provide for continued pet care and provide funds in the trust for the upkeep, vet care and other costs of the pets. This type of trust can be made independently and/or can be created in the pet owner's Will.
The Law Office of Emily Ann Klotz, PLLC can assist you in determining the appropriate type of Trust to create, depending on your specific needs.