Trusts are an excellent — and very versatile — estate planning tool. They create a contract between three parties: a grantor, a beneficiary, and a trustee. The grantor is the person who creates the trust, and whose assets go into it. The beneficiary is the person who will benefit from the assets. The trustee is the person who is entrusted with distributing the assets, in accordance with the grantor’s wishes, to the beneficiary.
In today’s blog post, we’re exploring some of the lesser known types of trusts that many people don’t realize they have at their disposal.
1. Pet trusts
Are you concerned about what will happen to your furry friends after you pass away? Fortunately, you can provide for them financially with a pet trust. The trustee will need to be someone who is willing to care for your pets and provide for them physically and emotionally, but they won’t have to worry about affording food, toys, vet care, and all the other expenses that come with pet ownership.
2. Gun trusts
If you leave a firearm to someone in your Will, it will have to pass through probate. Since everything that happens in probate is a matter of public record, some people want to avoid this. For safety and peace of mind, many people want to keep inheriting a gun to themselves. That’s where gun trusts come in. When you set up a gun trust, the trust technically owns the gun or guns, so your loved ones won’t have to worry about things like public records, criminal background checks for gun ownership, etc.!
3. Generation-skipping trusts
In the absence of any estate planning documents, your assets would usually be split between your surviving spouse and your children if you have any. If you want to leave assets to your grandchildren instead of or in addition to your spouse and/or children, you can use a generation-skipping trust to do so. These trusts also help you avoid estate taxes!
Who can help me set up these types of trusts?
At Pence Law Firm, P.C., we have extensive experience in all areas of estate planning, including these lesser-known types of trusts. If you are interested in setting one of these up as a part of a cohesive and effective estate plan, we would love to help you. If you’re ready to get started, give us a call at (918) 367-8505. We can’t wait to meet with you to discuss your needs and get started on your plan!