[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/different-trusts-for-different-estate-planning-purposes-greenwich-ct-new-york-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/different-trusts-for-different-estate-planning-purposes-greenwich-ct-new-york-ny\/","headline":"Different Trusts for Different Estate Planning Purposes","name":"Different Trusts for Different Estate Planning Purposes","description":"\u201cTrusts are legal entities that own assets, and all trusts are not alike. They are created by a written trust document with certain provisions that can vary from trust to trust.\u201d There are a few things all trusts have in common, explains the article “All trusts are not alike“, from the Times Herald-Record. They all […]","datePublished":"2020-09-04","dateModified":"2024-03-20","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e96077e3.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e96077e3.jpg","height":863,"width":1280},"url":"https:\/\/www.amorusolaw.com\/blog\/different-trusts-for-different-estate-planning-purposes-greenwich-ct-new-york-ny\/","about":["Beneficiary","Estate Planning","Grantor","Irrevocable Life Insurance Trust\/ILIT","Medicaid","Medicaid Asset Protection Trust (MAPT)","Revocable Living Trust","Special Needs Trust \/ SNT","Trustee","Trusts"],"wordCount":557,"keywords":["Beneficiary","Estate Planning","Grantor","ILIT","Irrevocable Life Insurance Trust","MAPT","Medicaid Asset Protection Trust","Revocable Living Trust","Special Needs Trust","Supplemental Needs Trust","Trustee","Trusts"],"articleBody":"\u201cTrusts are legal entities that own assets, and all trusts are not alike. They are created by a written trust document with certain provisions that can vary from trust to trust.\u201dThere are a few things all trusts have in common, explains the article “All trusts are not alike“, from the Times Herald-Record. They all have a \u201cgrantor,\u201d the person who creates the trust, a \u201ctrustee,\u201d the person who is in charge of the trust, and \u201cbeneficiaries,\u201d the people who receive trust income or assets. After that, they are all different. Here\u2019s an overview of the different types of trusts and how they are used in estate planning.\u201cRevocable Living Trust\u201d is a trust created while the grantor is still alive when assets are transferred into the trust. The trustee transfers assets to beneficiaries when the grantor dies. The trustee does not have to be appointed by the court, so there\u2019s no need for the assets in the trust to go through probate. Living trusts are used to save time and money when settling estates and to avoid will contests.A \u201cMedicaid Asset Protection Trust\u201d (MAPT) is an irrevocable trust created during the lifetime of the grantor. It is used to shield assets from the grantor\u2019s nursing home costs but is only effective five years after assets have been placed in the trust. The assets may also be shielded from home care costs under certain circumstances. Assets in the MAPT trust do not go through probate.A Special Needs Trust (SNT) is used to hold assets for a disabled person who receives means-tested government benefits, like Supplemental Security Income and Medicaid. The trustee is permitted to use the trust assets to benefit the individual but may not give trust assets directly to the individual. The SNT lets the beneficiary have access to assets without jeopardizing their government benefits.An \u201cInheritance Trust\u201d is created by the grantor for a beneficiary and leaves the inheritance in trust for the beneficiary on the death of the trust\u2019s creator. Assets do not go directly to the beneficiary. If the beneficiary dies, the remaining assets in the trust go to the beneficiary\u2019s children, and not to the spouse. This is a means of keeping assets in the bloodline and those assets are protected from the beneficiary\u2019s divorces, creditors and lawsuits.An \u201cIrrevocable Life Insurance Trust\u201d (ILIT) owns life insurance to pay for the grantor\u2019s estate taxes and keeps the value of the life insurance policy out of the grantor\u2019s estate, minimizing estate taxes. As of this writing, the federal estate tax exemption is $11.58 million per person.A \u201cPet Trust\u201d holds assets to be used to care for the grantor\u2019s surviving pets. There is a trustee who is in charge of the assets, and usually a caretaker is tasked with caring for the pets. There are instances where the same person serves as the trustee and the caretaker. When the pets die, remaining trust assets go to named contingent beneficiaries.A \u201cTestamentary Trust\u201d is created by a will and assets held in a Testamentary Trust do not avoid probate and do not help to minimize estate taxes.An estate planning attorney in your state will know which of these trusts will best benefit your situation.Reference: Times Herald-Record (August 1,2020) “All trusts are not alike“"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Different Trusts for Different Estate Planning Purposes","item":"https:\/\/www.amorusolaw.com\/blog\/different-trusts-for-different-estate-planning-purposes-greenwich-ct-new-york-ny\/#breadcrumbitem"}]}]