Trusts are created for a number of reasons, primarily for the purpose of keeping property, whether it be real or personal, tangible and intangible, for the benefit of another individual. There are multiple types of trusts, each designed to fulfill a specific need and outcome. There are Special Needs Trusts, Credit Shelter Trusts, Revocable and Irrevocable Trusts, and Testamentary Trusts. In order to determine what type of trust you may need or be interested in, consult one of the attorneys at Byrd & Byrd.
Credit Shelter Trusts
A Credit Shelter Trust, sometimes referred to as a bypass trust, allows a married individual to reduce estate taxes when passing on their assets to designated heirs. In such a trust, it is prearranged that when the surviving spouse passes away, the assets are transferred to the beneficiary (or beneficiaries) named in the trust. One typical stipulation with credit shelter trusts is that the surviving spouse retains the rights to the income generated from the trust for the remainder of his or her life.
For a free consultation or a quick response to your questions regarding Trusts, contact Timothy Leahy below: