There are several types of trusts. Some examples are:
Special Needs Trust (SNT): Also called a Supplemental Needs Trust. One must never leave a lump sum inheritance to a recipient of Public Benefits such as SSI or Medicaid. They will lose the SSI and/or Medicaid benefits and the amount inherited is subject to Medicaid Recovery. However, it is permissible to provide inheritance to an adult with special needs using a SNT.
Testamentary Trust: A Trust created by your Will. A Testamentary Trust does not exist until you die, and your Will indicates the Trust to begin. Some people create an SNT in this way.
Pooled Trust: Helps people with disabilities qualify for programs such as SSI and Medicaid by placing their assets which are over the limit into a pooled trust.
Irrevocable Trust: Cannot be changed, reversed, or recovered; final. Example, Irrevocable Burial Trusts are a useful tool for Medicaid Planning purposes.
Others: Charitable Trust, Constructive Trust, Spendthrift Trust, Tax By-Pass Trust.
Revocable (Inter-Vivos) Living Trust: Discussion below and part 2 next month.
A living trust will help with the management of your assets while you are alive and will help with the distribution of your assets after you die. This is a good tool to use to avoid both Guardianship and Probate.
establishing a REVOCABLE LIVING Trust
Typically, it takes about two to three weeks after the initial meeting with your attorney to prepare, allow for your review, make any edits necessary, and to execute (sign with two witnesses and a notary) the final trust documents and any deeds transferring real property into the Trust. After the trust documents are signed, it is necessary to complete the steps necessary to transfer other assets to the trust. This can take an additional week or two depending on how quickly you act.
Diana Mangsen focuses her practice as an elder law attorney in Clearwater, Largo, St. Petersburg, Dunedin, Palm Harbor and the Tampa Bay area.
For more information, visit our website at
https://www.mangsenlaw.com/
or call (727) 888-6282.