As Maryland residents consider how to approach their estate plans, they may find themselves coming across various planning terms. Though some of the terms may seem familiar, gaining a better understanding of other tools and phrases may prove useful. If parties are hoping to extend their plans beyond a simple will, they may find trust information useful as well.
First of all, a trust is typically utilized for the distribution of assets. A trustee is a qualified individual who has been appointed to manage the trust. Of course, there are a variety of trusts that may suit particular needs. A revocable living trust is one which is commonly used and holds assets during the individual's life. Upon that person's death, the assets pass into the ownership of the beneficiaries.
A special needs trust is a more specific option that involves setting aside funds and assets in hopes of maintaining the quality of life for a disabled individual. This type of trust could also help avoid potential disqualification for government benefits due to obtaining a direct inheritance. Another type of specific trust is an inheritance trust. It holds assets that a beneficiary is set to inherit but protects the property from potential lawsuits or creditors.
Because various types exist, individuals may wish to give due consideration to each type of trust in order to determine which may best suit their needs. In order to gain additional information on this option, Maryland residents may wish to consult with experienced attorneys. These legal professionals could help review cases and provide advice on useful estate planning tools.
Source: recordonline.com, "Bonnie Kraham: Commonly used terms for elder law estate planning", Bonnie Kraham, Feb. 23, 2017