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Estate Law Maryland: Most Useful Trusts in Future Estate Planning


With so many terms found in the laws and regulations, people often get confused with what’s the types of trusts available in estate law Maryland. We have explored and practised all the laws over the years to maintain a good level of expertise. Below, we bring you some types of trusts may be useful in future estate planning.

Trusts for Minors

As part of a formal estate plan, many people leave money in trust to their children or their grandchildren. Usually this is done in trust law Maryland to ensure that the money is available for the good of the children when they are younger-for welfare, schooling, medical expenses etc. Once the children reach a certain age or level of achievement (such as receiving a bachelor's degree), they will receive money from the trust as they wish to do with it.

Special Needs Trusts 

Special needs trusts are mechanisms that allow a person to leave property to a special needs individual. Most people with special needs receive support from the State. For most cases, if they were to inherit money unexpectedly, they would be excluded from those benefits before the inheritance has been spent. Special needs trust secure government services for certain people while allowing them to have money for any things they may need.

Marital Trusts

Often married couples have trusts in their wills, or separately for their spouse's benefit, usually for two reasons: (1) taxes, and (2) property security. In previous years, for certain couples to take advantage of estate tax exemptions, marital trusts were required, and they could be needed in the future as the laws are likely to change. Marital trusts if estate law Maryland, will also secure a spouse's property and make sure it ends up where it wants to go. For example, a husband with grown children from a previous marriage will agree to let his wife use his property after he passes by, but put it into a trust so that it goes to his children after she passes away.

Revocable Living Trusts

Revocable living trusts are instruments that are completely different from wills even though they often function hand in hand with determination to satisfy the decedent wishes. Revocable living trusts are generally used to escape prosecution in states where probate is especially cumbersome, or in a few other cases, such as when an individual owns multi-state real estate.

Irrevocable Life Insurance Trusts

Irrevocable life insurance trusts (or ILIT) may be used to transfer a person's life insurance income for estate tax purposes beyond his or her home.
Spendthrift trusts. Spendthrift trusts are usually set up to safeguard the properties of the beneficiaries from both themselves and creditors. These trusts typically have an appointed trustee who has full control over the trust's asset distribution.


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Location: Bethesda, MD, USA

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