Most people are only familiar with the most common trusts, such as irrevocable trusts, living trusts, and charitable trusts. But if you dig a little deeper into the world of trusts, you will find that there are trusts for almost every situation imaginable. Some of these trusts are seriously strange, and you might be wondering why someone would possibly want to create them. But you never know – perhaps one of these trusts is perfect for your unique situation, and it may provide you with considerable benefits. After all, these trusts wouldn’t exist unless they allowed someone to benefit financially.
The first Rabbi Trust was created by a Jewish congregation for its rabbi. Today, rabbi trusts can be used by a range of individuals – not only Jews and rabbis. Basically, the trust allows employees to receive money with minimal tax obligations – and it may benefit both employees and employers. However, a Rabbi Trust usually isn’t very useful when it comes to estate planning.
Despite the name, a QTIP Trust has nothing to do with Q-tips – or anything you might put in your ear. QTIP stands for “qualified terminable interest property,” and this type of trust is popular among those in their second marriages. The trust provides financial security for children you might have from a prior marriage, and it allows for considerable flexibility. One of the most notable features of a QTIP Trust is that the federal estate tax on funds within the trust is postponed until the death of the surviving spouse. At the time of their passing, the QTIP Trust allows for gift and estate tax exemptions for the remaining trust assets.
Blind Trusts are for those who have complete faith in their trustees. With this type of trust, the trustor has absolutely no control over how the trust is managed, and all decision-making authority lies with the trustor. This is useful when there are concerns about conflicts of interest.
A Totten Trust is essentially just a bank account that is payable when the person who established the account dies. When you set up your Totten Trust, you simply name the beneficiary who will receive the assets upon your death. The benefit of a Totten Trust is that it allows you to avoid probate court proceedings. This allows beneficiaries to get hold of their funds without having to wait for the probate court proceeding to finish.
Where Can I Find a Qualified Estate Planning Attorney in New Jersey?
If you have been searching the Garden State for a qualified, experienced estate planning attorney, look no further than Giro, LLP, Attorneys at Law. Over the years, we have assisted numerous individuals with their estate plans. We know that estate plans must be personalized based on each individual’s unique needs, and we’re ready to help you explore a range of potential trusts. Book your consultation today, and you can choose the best possible route forward and create a truly effective and personalized estate plan.