21 Reasons Why You Might Need a Specific Type of Trust

The optimal estate plan includes a Revocable Living Trust that turns into a Beneficiary Controlled Irrevocable Asset Protection Trust for Bloodline Descendants.  However, there are other types of trusts used for specific reasons.  Below are 21 other types of trusts and why you might need them. 

1. You’re a married couple and you want to reduce or eliminate the federal estate tax—Credit Shelter Trust.
2. You’re a married couple and you want the surviving spouse to get what they need from a trust during the surviving spouse’s lifetime, but when that spouse dies, the remaining assets go to the children of the couple—Marital
3. For 2^nd second marriages and blended families when you want to reduce or eliminate the federal estate tax, take care of the surviving spouse, and afterwards what you own goes to children from a previous marriage—QTIP Trust.
4. You want to reduce or eliminate the federal estate tax, but your spouse is not a citizen—Qualified Domestic Trust.
5. To put assets into a trust during your lifetime for reasons like the ease of administration of assets and if you later change your mind you can end the trust—Revocable Living Trust.
6. Giving away what you own but you want to make sure that the beneficiaries don’t blow it—Irrevocable Trust. 
7. Giving away what you own but you want to protect your beneficiaries from divorced spouses, bad habits, bankruptcy and lawsuits—Asset Protection Trust. 
8. Making sure what you own only goes to bloodline descendants (not spouses of your descendants) for subsequent generations indefinitely into the future—Dynasty or Bloodline Trust. 
9. When you want to give what you own to someone who has special needs and is on public benefits like Medicaid without disqualifying them for the public benefits—Third-party Special Needs Trust. 
10. When someone qualifies for public benefits because of the disability from a tragic accident and the proceeds from that lawsuit if given directly to that person could disqualify them for those public benefits—First-party Special Needs Trust.
11. When you give your retirement assets to beneficiaries and you want to protect them from divorced spouses, bad habits, and lawsuits—Qualified Retirement Trust. 
12. A trust that uses your home to reduce or eliminate the federal estate tax—Qualified Personal Residence Trust. 
13. The trust for life insurance to avoid the federal estate tax—Irrevocable Life Insurance Trust. 
14. Using an annuity in a trust to reduce or eliminate the federal estate tax—Grantor Retained Annuity Trust. 
15. Using a charity to reduce or eliminate the federal estate tax—Charitable Retained Annuity Trust. 
16. Using a charity to reduce or eliminate the federal estate tax—Charitable Remainder Annuity Trust. 
17. Using a charity to reduce or eliminate the federal estate tax—Charitable Lead Annuity Trust. 
18. Using a charity to reduce or eliminate the federal estate tax—Charitable Lead Unitrust. 
19. Using a charity to reduce or eliminate the federal estate tax—Charitable Remainder Unitrust. 
20. Using an annuity to reduce or eliminate the federal estate tax—Grantor Retained Unitrust. 
21. Trust that allows the person who creates it income for a short period of time to reduce or eliminate the federal estate tax—Grantor Retained Income Trust.

Want Peace of Mind and a Complete Evaluation of Your Case? 

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• Optimal Estate Plan to Protect Your Life Savings and Family Relationships
• Why Your Retirement Plan Should be in a Trust
• An Estate Plan for 2^nd Marriages & Blended Families
• 44 Reasons Why You May Need to Update Your Estate Plan
• Annual Review of Your Estate Plan to Make Sure it Works
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