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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