A living trust, or inter vivos trust, is a tool to protect you while you're still alive. It allows you to keep the use of your assets and directs how they'll be handled in the event that you can't make decisions for yourself.

This is a very valuable trust that experts recommend for most Americans today. You transfer whatever assets you wish into the trust and designate yourself as the trustee. You also designate alternate trustees who can make decisions and deploy your assets on your behalf.

Testamentary trusts are contained within your will and only operate after your death. They allow particular assets to be distributed to your intended heir or heirs. Testamentary trusts are lightly overseen by probate courts, so you have some protection to ensure that your wishes will be followed by the trustee.

These trusts are excellent tools if you have significant sums of money not currently in your estate that will be passed on to minors or others who may not know what to do with the money right away.

A minor's trust, as its name implies, is designed to care for minor children or grandchildren's needs. Since minors can't inherit money, a trust is one of the best ways to leave an inheritance to them.

You could name your spouse, a friend, or another family member as the trustee, or you may want to appoint an objective third party. Minor's trusts generally end when the minor reaches the age of majority (typically 18 years of age, but it is often up to you) and receive control of their financial assets.

A marital trust is an arrangement to care for your surviving spouse's needs. Upon your death, the assets are put into the trust and your surviving spouse receives proceeds and/or principal payments from the trust.



Why not simply give all your assets straight to your spouse? Many family situations are complex and may involve children or other family members from prior marriages. Using a marital trust ensures that you retain control over who inherits the funds after your spouse passes away.

Want to be generous with your money after you pass on? Then consider a charitable trust. This trust is set up with a trustee, your funds (either before or after your death), and designated charitable efforts that you personally want to give to.

You may want to simply specify a sum of money to be given. Or you could choose more tailored approaches, including gifting an asset's interest income only, receiving the interest while the charity uses the items, or giving funds only during a specified term.

There are a variety of reasons to use trusts in your estate. With so many choices, you can find the right trust vehicles to protect your loved ones and use your money exactly how you want it used. At Kisner Law Firm, we specialize in estate planning and trust creation. Call us today to learn more about which trusts might best fit your interests.