A trust can be a useful tool for anyone who wants to manage assets while they are alive, and ensure a smooth transition with minimal tax exposure once they have passed. There are many different types of trusts. Our firm, Foster Law, PLLC, has years of experience handling matters like these throughout North Carolina. Come talk to a lawyer about how a trust might benefit your family.
Types Of Trusts
A trust can be an important part of a comprehensive estate plan. There are a variety of trusts you may choose to establish to help achieve your goals. For example:
An asset protection trust is used to protect a person's assets from future creditors. This kind of trust is usually set up for a certain nuamber of years so that the trust maker is not a beneficiary. The undistributed assets of the trust are returned to the trust maker upon termination of the trust, assuming creditors are not a threat. A Totten trust is created during the lifetime of the grantor, and can help a family to avoid the probate process. This type of trust is typically used in savings accounts and other bank accounts. Upon the grantor's death the money in a Totten trust passes to the designated beneficiary(ies).
A tax bypass trust allows a spouse to leave money to their partner. The purpose is to limit the amount of federal estate tax that one would be forced to pay once the second spouse has passed away. This is important, because when the surviving spouse dies, the remaining assets over the exemption limit would be taxable up to a rate of 55 percent. This type of trust makes sure that can't happen, and can save your family or other beneficiaries a lot of money, depending on the size of your estate.
These are only a few of the many types of trusts that are offered. Let us help you determine what is the best for you and your loved ones.
Call Today For Guidance
If you are interested in setting up a trust, we can help. For a free consultation with an attorney, call our office in Fayetteville at 910-600-0149 or fill out our contact form.