What are your options for trusts?

You feel ready to tend to your estate plan, and you learn about wills and trusts. Do you understand the different trust options?

CNN Money describes multiple legal entity types. Determine which suits your needs most favorably.

Revocable/Irrevocable

With a revocable trust, you retain full control of the trust’s assets, and you may modify or rescind the trust terms when you like. Assets in an irrevocable trust do not belong to you, nor do you have the power to modify the trust without the beneficiary’s say-so. One advantage of the irrevocable trust is its assets do not qualify for estate taxation.

Generation-skipping

Do you want to leave assets to your grandchildren or a younger generation? If so, consider a generation-skipping trust, also known as a dynasty trust. The trust lets you leave money to your younger beneficiaries without worrying about taxes.

Credit-shelter trust

Use a credit-shelter trust to create a will that leaves an inheritance amount that does not surpass North Carolina’s latest estate-tax exemption. When you reach that limit, you leave the rest of your estate to your spouse without incurring taxes. A noted benefit of the credit-shelter trust is that even if the trust’s sum grows over the years, you do not have to worry about estate tax.

Qualified personal residence trust

Do you own a home you expect to increase in value over the years? If so, you may prefer setting up a qualified personal residence trust that subtracts the value of a vacation property or primary residence from your estate.

Explore your many trust options while mapping out your estate. Educating yourself lets you make decisions with confidence.