A revocable trust is one of the most common trusts people use for asset protection when creating an estate plan. A revocable trust can allow a person to distribute assets to beneficiaries. The person who makes the revocable trust can alter or revoke the trust at any time.
Did you know there are many other types of trusts? Here are three more kinds of trusts you can add to your estate plan:
1. Incentive trust
How would your legacy be used after you pass away? You could control how trust funds are used by creating an incentive trust. An incentive trust can include clauses that beneficiaries must meet to access trust funds. For example, you could limit access to trust funds unless your beneficiary is enrolled in college. You could also make a clause that only allows your beneficiary to receive funds based on their grades.
2. Charitable trust
Do you support a charity? You can create a charitable trust to continue funding a charity, private organization or research program after you pass away. Funds from a charitable trust can be distributed at regular intervals until all trust funds are used or a designated set of funds is used.
3. Pet trust
Do you have a pet that you believe will outlive you? You can set up a pet trust that includes assets for your pet’s care. Trust funds in a pet trust can pay for your pet’s guardian and any needs your pet requires, such as medical care, food and grooming.
Do you want to learn more about trusts? You can reach out for professional legal guidance to learn more.