Many adult children in Georgia assist their aging parents in long-term care planning issues. Executing an estate plan is often part of this process. Certain legal issues can be quite complex, such as those regarding choosing a trust. The type of document used can have a significant impact on inheritance, charitable donations, estate taxes and more.
There are numerous types of trusts and it is definitely not a one-size-fits-all type of issue. Determining which type of trust best fits a person’s particular needs and ultimate planning goals can be tricky. It is often helpful to seek guidance from someone well-versed in estate planning laws before signing any official documents.
A by-pass trust is a common document estate owners use when their goal is to reduce a surviving spouse’s taxable estate. This type of trust typically transfers an estate upon death to a trust designated for a surviving spouse. Some people, especially those who are not married and do not have children, prefer to create charitable trusts, which can exist in perpetuity and are designed to provide benefits or monies to charitable organizations.
A generation-skipping trust can help Georgia estate owners provide for grandchildren, great-grandchildren or other future generations. An insurance trust consists of insurance-related policies or proceeds. An irrevocable trust is basically permanent while a revocable trust can be removed or changed, as needed. An experienced estate planning attorney can explain all available options in greater detail and can offer recommendations as to which type of trust would be the greatest asset in a particular set of circumstances.