On behalf of Chandler and Brown, Ltd. posted in wills and trusts on Thursday, February 1, 2018.
Many people in Minnesota may have a will, but they may not know much about how a trust works and how it will benefit them. Trusts can be an integral part of a well-rounded estate plan. The following are some types of trusts that Minnesotans may want to consider executing.
One basic type of trust is a revocable living trust. This trust is executed and funded during a person’s lifetime. When the person dies, the trust assets are not probated, but, instead, are distributed directly to the trust beneficiaries. Compare this to a testamentary trust, which is part of a person’s will and is probated.
Another type of trust is a Medicaid asset protection trust. This type of trust is executed during a person’s lifetime. Funds in the trust are kept separate from the person’s other assets when it comes to qualifying for Medicaid. This can provide a means for a person to afford nursing home care when needed.
Some people may also benefit from a special needs trust. If the beneficiary is disabled and receives government benefits, the trust assets are held for the beneficiary “in kind,” allowing them to have a better quality of life. However, the benefits are managed by a trustee — the beneficiary is not directly granted them.
If a person has a furry or feathery friend, they may even want to consider executing a pet trust. In such a trust, funds are reserved to care for the person’s pet. A trustee will manage the funds in the trust and, when the person passes away, the trustee may also be the one to care for the person’s pet. A second beneficiary will be included in a pet trust should the pet pass away.
This is only a very brief overview of a select few trusts that may be of interest to our readers. In fact, the world of wills and trusts is very large, making is so that just about anyone can find one to suit their needs. There are many benefits to trusts that are worth exploring, so a person interested in executing a trust should seek the help they need to make a sound decision.