4 Trust Types You Should Know About
If you want to leave a gift to family or friends when you pass on, a trust is a great way to do it. Here are four types of trust you should know about when you do your estate planning.
- Gift Trust – This is a great way to give loved ones a gift now and set more aside for later without a huge tax penalty. Your family can take the maximum allowable gift per year that is not taxable, and the rest rolls over into a trust that will become available when you pass away.
- Qualified Personal Residence Trust – If you want to transfer a property you own to your family, but you don’t want them to have to pay the full market value, a QPRT provides tax benefits as well as asset protection.
- Intentionally Defective Grantor Trust – An IDGT is the right trust for passing on the family business. However, it provides protection for the family member against creditors.
- Charitable Remainder Trust – What if you want to make your gift to a charity? The CRT is right for you. Plus, your beneficiaries may get tax benefits on the rest of the estate, so everybody wins.
Giving Gifts the Smart Way in Southern California
The estate planning attorneys at Petrov Law Firm can help you to be generous with your gifts while still making sound financial decisions for the future of your family. Give us a call today at 619.344.0360, and you can schedule a consultation at any of our three convenient locations.