There is a wide variety of trusts out for Kansas City residents to consider, and many individuals find that creating a trust is the right choice for passing on their assets. What are some different types of trusts Kansas City residents might be interested in?
First of all, what is a trust? In general, it is an estate planning vehicle in which a third-party trustee manages the trust assets, which are distributed to the beneficiaries named in the trust per the terms of the trust. In a revocable trust, the person who creates it reserves the right to alter it during his or her lifetime. But, once the creator of the trust passes away, the trustee must follow the terms of the trust with regards to distributions.
There are many specialized types of trusts that may be available to Kansas City residents. One example is a testamentary trust. This type of estate planning vehicle is created in an individual’s will. Usually, to fund such a trust, court action needs to be taken. Special needs trusts are another type of trust that individuals can create to help provide for beneficiaries who may also be receiving government benefits, such as Supplemental Security Income or Medicaid benefits. In addition, charitable trusts may be an option for those who want to donate to a charitable organization, but may still want to keep an interest in the trust assets during their lifetime.
These are only a few examples of the wide variety of trusts a person in Kansas City may want to explore. With all of the trusts out there, many people may find one that suits their needs regardless of their wealth.
Source: The Motley Fool, “What Is a Trust, and Why Should I Have One?,” Dan Caplinger, Sept. 6, 2015