There may be numerous types of tools available via the estate planning process, each of which may provide its own set of potential advantages and protections. Trusts are a type of tool that could offer various benefits and the type of trust that best fits one’s situation may vary depending on a variety of factors. Exploring the various types of trusts available via this process could help individuals in Colorado prepare to evaluate their options and choose the path that best meets their future interests.
Two of the most common examples of trust options may involve revocable and irrevocable trusts. Studies state that the grantor of a revocable trust may be able to modify the terms of the trust at any time, while this might not be an option with irrevocable trusts. However, irrevocable trusts may help protect assets from creditors and may provide certain tax benefits, while these benefits might not be included in revocable trusts.
Experts indicate that those who have children with functional needs may also benefit from exploring what a special needs trust might have to offer. Those who wish to help loved ones with educational pursuits could also benefit from exploring options such as education trusts. Individuals who wish to give assets to charities may also have the option to implement a charitable remainder trust. Generational and spendthrift trusts are two more examples of options that might help one pursue the goal of preserving wealth.
Addressing trust options
There may be various types of trusts available via the estate planning process and knowing how to tell which option best meets one’s needs could seem daunting at times. Those who wish to know more about what each option might have to offer could consider speaking with an estate planning attorney for assistance in carefully exploring the available options. An attorney can help a client prepare to choose a path that best reflects his or her interests and goals and provide guidance through every step of the subsequent process.