Essential Trusts to Include in Your Estate Plan

When it comes to planning for the future, having a will and estate plan in place is crucial. However, navigating the world of trusts can be overwhelming. To shed light on this topic, let's delve into the essential trusts recommended by estate planning attorney Donna Stefans.

1. Revocable Living Trust

A revocable living trust serves as a vital layer of instructions that dictate how your assets are managed both during your lifetime and after your passing. According to Stefans, this trust is even more critical than a will as it allows for a seamless transfer of assets to your beneficiaries without the need for court intervention.

2. IRA Trust

For individuals with retirement accounts, an IRA trust is highly recommended. This trust ensures that your IRA funds are managed by a designated trustee until your beneficiary is of age to responsibly handle the account. By setting up an IRA trust, you can bypass the lengthy court process and safeguard your assets for your loved ones.

3. Trust for Minors

If you have minor children, a trust for minors is essential in your estate plan. This trust enables you to designate a trustee to manage assets on behalf of your child until they reach a specified age. By setting up trust rules, you can control when and how the funds are distributed to ensure your child's financial well-being.

4. Education Trust

An education trust is a specialized trust that outlines how funds should be used for the beneficiary's education expenses. This trust allows you to prioritize your child's educational needs and provide for their future success. By planning ahead with an education trust, you can secure your child's financial stability even after you are gone.

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By: insider@insider.com (Jen Glantz)
Title: Essential Trusts to Include in Your Estate Plan
Sourced From: www.businessinsider.com/asked-estate-planning-attorney-trust-for-daughter-2025-1
Published Date: Fri, 31 Jan 2025 12:44:02 +0000