Figuring how to organize your assets for your will is currently forefront in your mind. You want to be able to provide stability for your family after your death, but you would also like some belongings to have protection.
A trust is important no matter your level of income. Wisconsin has several types of trusts that an attorney may tailor to your specific needs.
What is a trust?
A person uses a trust as an arrangement that allows a person, or trustee, to hold and distribute assets for another person, known as a beneficiary. This type of legal document is part of a person’s estate plan. Some people may generate trusts to begin before their death.
Types of trusts
The state of Wisconsin recognizes several different types of trusts. Some include the following:
- Testamentary trust: You may add this trust as part of your will. If you have a loved one who is a minor, has medical issues or you cannot trust with money, this may be the type of trust you create.
- Special needs trust: Someone in your life may have to depend on the government for assistance, usually due to a physical or mental disability. A trust of this sort allows the beneficiary to receive money without losing his or her benefits.
- Standalone retirement trust: A trust of this kind protects your retirement accounts such as IRAs and 401(k)s. You can arrange for this trust to be set up during your lifetime, and you can change it at your discretion. Or you can create a trust that you cannot change without the consent of the beneficiaries.
- Pet trust: Pet trusts provide for the care of your pets after you pass. In this instance, you choose someone to oversee the distribution of funds to cover your pet’s needs.
More trusts are available to cover your residence or to help your beneficiaries avoid paying taxes. Trusts do not go through the probate process.