Clients frequently come into my law office asking “Should I (or we) have a trust?” My answer is always “It depends on your situation and what your goals are.”
Then I ask clients, “What are your goals? What are the concerns you have that make you think about having a trust?” These concerns may include:
- Providing for a minor or young adult child
- Providing for a disabled person
- Providing for a pet
- Avoiding probate
- Minimizing estate tax
- Preserving your assets against the high cost of nursing home care
- Keeping your vacation home in the family.
There are many different types of trusts, for many different purposes:
- A trust for a minor or young adult child;
- A “special needs trust” for a disabled person;
- A trust for the care of an animal;
- A revocable living trust, to avoid probate;
- A tax-oriented trust, to reduce estate taxes;
- A trust to preserving your assets against the high cost of nursing home care;
- A trust to hold your vacation home for the benefit of your family.
In the coming weeks, I will write about different types of trusts which can be useful depending on the client’s situation. Later this week: Trusts for minor or young adult children.