TYPES OF TRUSTS

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 A revocable living trust is a legal arrangement established during a person’s lifetime that allows them to retain control over their assets while specifying how those assets should be managed or distributed after their death. It is revocable, meaning the grantor can modify or cancel it at any time, offering flexibility in estate planning. This trust also helps avoid probate, enabling a faster and smoother transfer of assets to beneficiaries upon the grantor’s passing. 

 An asset protection trust is a special type of irrevocable trust created to safeguard assets from creditors, lawsuits, or legal judgments, ensuring the grantor's wealth is protected from potential future claims. It allows the grantor to retain certain benefits from the assets while strategically using it as a tool in estate planning to secure financial stability against liabilities. 

 A special needs trust is a legal arrangement created to provide financial support for individuals with disabilities, ensuring they can access additional resources to improve their quality of life. It is specifically designed to manage assets in a way that does not jeopardize the beneficiary's eligibility for essential government benefits, such as Medicaid or Supplemental Security Income (SSI). 

 A qualified income trust (QIT), also known as a Miller Trust, is a legal tool designed to help individuals with income exceeding Medicaid eligibility limits still qualify for Medicaid benefits. It allows them to divert excess income into the trust, ensuring it isn’t counted towards their Medicaid eligibility, while the funds are managed and used for approved expenses like medical care or personal needs. 

 A Qualified Terminable Interest Property (QTIP) trust is a type of trust used in estate planning that allows a surviving spouse to receive income from the trust for their lifetime, while ensuring the remaining assets ultimately go to the grantor's chosen beneficiaries. This trust provides for the surviving spouse while allowing the grantor to control the final distribution of assets and potentially minimize estate taxes. 

A Dynasty Trust is a long-term estate planning tool designed to preserve wealth across multiple generations by minimizing estate taxes and protecting assets from creditors or divorce settlements. It allows the grantor to pass assets to beneficiaries, such as children or grandchildren, while maintaining control over how and when the assets are distributed, often lasting for many decades or even indefinitely in states that allow perpetual trusts.

  A life insurance trust is an irrevocable trust designed to hold a life insurance policy, removing the policy's proceeds from the insured's taxable estate. It provides control over how the death benefit is distributed to beneficiaries while potentially reducing estate taxes.

  A charitable remainder trust (CRT) is an irrevocable trust that provides income to the donor or other beneficiaries for a specified period, with the remaining assets going to a designated charity upon termination. It offers tax benefits, including potential income tax deductions and estate tax reductions, while supporting charitable causes.