Richmond Trusts Attorney
Trusts can be a great way to shield assets from taxation and creditors, they can be used to avoid probate or to spend down an estate’s assets to avoid estate taxes. Other types of trusts can be used to help adult children with disabilities, or to ensure that you receive the high quality care from a long term care facility during old age. The Richmond trust attorneys can help you create various trusts to meet your specific needs.
Common Types of Trusts
- Revocable Trust—A revocable trust, which is sometimes called a living trust, is designed to allow the grantor access to the funds during their lifetime. As such, they can add and remove assets from the trust during their lifetime. Revocable trusts are the most common types of trusts used to avoid probate.
- Irrevocable Trust—An irrevocable trust does not allow the grantor to modify the trust once the assets go into it. It cannot be modified, revoked, or cancelled. The benefit of an irrevocable trust is that once the assets are placed in it, they are no longer the property of the grantor. Irrevocable trusts can be used for a variety of purposes, including avoiding taxes and misuse of assets by beneficiaries due to stipulations placed on the funds.
- Long Term Care Trust (Medicaid Trust)—In order to qualify for Medicaid, which pays for long term care, you cannot have assets in excess of $2,000. As such, you would either have to spend down your assets to qualify, pay exorbitant out of pocket expenses for long term care, or create a Medicaid trust, which essentially allows you to keep your assets and qualify for Medicaid at the same time.
- Asset Protection Trust—An asset protection trust (APT) shields assets from creditors, judgements, and lawsuits. Some states allow domestic APTs, and Virginia is one of these, according to Investopedia. Also common are foreign APTs, which hold the assets offshore, which creates an additional barrier of protection.
- Special Needs Trust—A special needs trusts holds assets for an adult child with disabilities, while allowing him or her to qualify for government programs such as Medicaid and disability benefits.
- Spendthrift Trust—For people who are unable to control their own spending, a spendthrift trust may be the most useful way for them to receive their inheritance, as spendthrift trusts give full authority to the trustee about how to spend the assets within the trust.
- Generation Skipping Trusts—A generation skipping trust allows
- Charitable Trust—Charitable trusts can be established as a method of gifting to your favorite charitable organizations, while strategically spending down the value of your estate.
Contact a Richmond Trust Attorney Today
There are dozens of types of trusts that may benefit your estate plan, but not all lawyers have the required experience to establish all of these trusts. When making major life decisions, we encourage you to go with a trusted law firm. Our Richmond trust attorneys at MichieHamlett can get started today, and are available for a free consultation.