An important goal when planning for the future is to create security and peace of mind. While no one can say with certainty what will happen in life, there are estate planning steps that do allow a Maryland individual to have the final say over what will happen to his or her assets. One way to do this is by creating a trust, a step that allows one to set aside and protect assets for a specific use. There are different types of trusts, and it is helpful to understand about the different choices before deciding.
Options for trusts
The best choice for a trust depends on what an individual hopes to accomplish with his or her assets. A trust can hold assets that include real property, bank accounts, land, life insurance policies and more. Assets held in a trust will not go through probate, and they generally fall in one of the following two categories:
- Revocable trusts — These allow one to control, move, increase or decrease assets held in the trust during his or her lifetime.
- Irrevocable trust — Once an irrevocable trust is established, it is not possible to modify it. This trust can provide protection from estate and gift taxes.
Within these two categories, there are many options for trusts. One can accomplish things like charitable giving, providing for a special-needs loved one or setting aside assets for a minor heir.
Considering all options
When walking through the estate planning process or considering options for trusts, it is helpful to work with an experienced Maryland attorney. Creating a smart plan can be complex, and it’s crucial to think about what will be best long-term. Each individual will want to consider what is best for the specific situation.