Building an estate plan provides peace of mind. You have control over your financial matters and health care decisions. When you build an estate plan in Georgia, including various types of trusts can maximize your wealth and ensure your heirs receive it according to your wishes.
Trusts serve as versatile estate planning tools. They help avoid probate, offer provisions for minor children or special needs family members and reduce estate taxes. Consider four key types of trusts you might want to include in your Georgia estate plan.
Revocable living trust
A revocable living trust, often just called a living trust, offers flexibility. You retain control of the assets you place into the trust while you live, and you can revise the trust as you see fit. When you die, the assets go directly to your chosen beneficiaries, sidestepping the need for probate.
The Qualified Terminable Interest Property (QTIP) trust works well for people in second marriages or those who want to ensure the care of their spouse but also want to control how the distribution of assets occurs after the spouse’s death. In a QTIP trust, the surviving spouse receives income from the trust during their lifetime. After they die, the remaining assets go to the beneficiaries you chose.
Retirement plan trust
Recent changes in tax laws affecting retirement plans make trusts a useful tool for protecting these assets. If you name a trust as the beneficiary of your retirement plan, you control how and when beneficiaries can access these funds after your death, offering both protection and tax benefits.
The decision on what trusts to include in your Georgia estate plan hinges on your unique situation, goals and needs. By considering options like these, you can craft an estate plan that fits your needs and leaves a strong financial legacy.