What Are Inter Vivos Trusts?
While this Latin term may sound complex, inter vivos trusts are actually very simple. They are trusts that are created while you are still alive as opposed to testamentary trusts, which are created by your will and only go into effect after your death. There are many different types of inter vivos trusts that you can consider while planning your most effective estate.
Inter Vivos Bypass Trusts
These are the most common living trusts to create. They help parents pass on assets to their children and spouses while preventing the assets from being subject to federal estate taxes each time wealth or assets are transferred. Some common examples of bypass trusts are AB or ABC trusts. However, bypass trusts are also irrevocable trusts, meaning they cannot be altered once they are created unless you want to go to court. Deciding to use an inter vivos bypass trust should be discussed with your estate planning lawyer.
Inter Vivos Guardianship and Conservatorship Trusts
Guardianship trusts are very important if you have children because they will help set up assets and funds for them in the event of the death of you and your spouse before they are of legal age. In these trusts, you will need to include directives on how the funds will be spent, directions for health care for your children, as well as wishes for your children’s education and overall welfare.
Conservatorship trusts are also important because they will be able to provide for a loved one in the event you are incapacitated. If you are spending most of your time in a hospital or in long-term health care, it can be difficult to keep up with your finances and your estate. Conservatorship trusts help avoid this problem. While not all rights need to be transferred over with a conservatorship trust, you will be able to dictate how another person should manage your assets
Inter Vivos Spendthrift Trusts
It is not uncommon to have hesitations when it comes to designating a trust to beneficiaries who may not be ready to bear the responsibility of acquiring such wealth. Inter vivos spendthrift trusts are a great way to add protections so an irresponsible trustee doesn’t squander the money. It also puts in protections from creditors.
Inter Vivos Charitable Trusts
Charitable trusts are a great way to hand off your money in a living trust if you want to avoid estate taxes or don’t have any surviving children to whom you may pass along your assets. By creating an inter vivos charitable trust, you will be able to continually help causes you care about before and after your death.
Contact An Experienced Estate Planning Lawyer
If you want to put your assets into a living trust, there are plenty of options to make sure your wealth is well taken care of. The attorneys at Legacy Protection Lawyers have decades of experience in managing a myriad of trusts and will be able to lead you down a path that is right for you and your family. Call our St. Petersburg offices today to start your plan, at 727-471-5868. You can also contact us online to schedule a consultation today.