Trusts are a key component to any well-prepared estate plan that offers many different benefits, and is typically used to minimize estate taxes. Unlike a will, trusts avoid probate and generally enable beneficiaries to inherit assets faster than if transferred through a will.
Other differences between a trust and a will include:
| Will | Trust |
| Covers the distribution of your general estate | Addresses specific assets to be passed |
| Administered upon death | Can be administered prior to death |
| Can be subject to probate to distribute assets | Avoids probate, saving time and money |
| Can be shared with multiple parties, including the court | Private between the donor, beneficiary, and trustee |
Living Trusts & Testamentary Trusts
There are two types of trusts: Living trusts and testamentary trusts.
1. Living Trusts
- Revocable trusts
- Irrevocable trusts
2. Testamentary Trusts
Created through the will, after death.
Using Trusts for Different Purposes in your Estate Plan
Trusts can be crafted in many different ways to achieve different objectives, such as minimizing taxes or skipping a generation.
Examples:
- Credit Shelter Trust (Bypass Trust, Family Trust)
- Irrevocable Life Insurance Trust (ILIT)
- Charitable Lead Trust
- Charitable Remainder Trust
- Generation-Skipping Trust (Dynasty Trust)
- Qualified Terminable Interest Property (QTIP) Trust
- Grantor Retained Annuity Trust (GRAT)
Schedule a Consultation with our Trusts & Estate Planning Attorneys
The Cary trust lawyers at Alexander & Doyle, P.A. have 20 years of experience helping Triangle families and individuals with estate planning. We work with you to determine the best methods of trusts for your situation and needs.
Whether a basic trust or taking a more strategic approach to your estate, attorneys Ann-Margaret Alexander and Andrea Nyren Doyle can help.
Contact us today for your consultation.