There are three basic types of trusts:
- Accumulation and Maintenance: This type of trust is designed to allow assets to accumulate until its beneficiaries reach a certain age (defined by the trust grantor).
- Interest in Possession: Under this type, a particular beneficiary can receive income from the trust’s assets.
- Discretionary: A discretionary trust provides discretionary power to its trustees to decide how to distribute capital and income.
Examples of specific purpose Trusts:
- Minor Trusts: ensures that your children are taken care of.
- Charitable Trusts: give you income and help you lower estate taxes. A charity is the beneficiary.
- Life insurance Trusts: lets you save on estate taxes since they are not considered part of your estate.
- Marital Trusts: used to hand over property to surviving spouses.
- Generation-skipping Trusts: lets you provide for grandchildren, great-grandchildren, etc., without paying gift or estate taxes.
- Grantor retained annuity Trusts: allows business owners to move stock or partnerships to children with lower gift taxes.
- Dynasty Trusts: move property to grandchildren, great-grandchildren, etc., and lower estate taxes.
* StateTrust does not provide fiduciary or trustee services, nor does it act as a fiduciary or trustee. StateTrust only serves as an intermediary in providing introductions to legal counsel and licensed trust companies that can provide fiduciary and trust services. Our services consist of managing the assets held in such trusts and legal entities.
Trust Topics