While core estate planning focuses on asset preservation and managing inheritances, your plan can do much more. Trusts, in particular, can help you build an entirely customized plan around your specific circumstances.
The following sections discuss three types of non-traditional trusts that function beyond financial considerations. They can help you address issues near and dear to your heart for extra peace of mind.
1. Protect inheritances from impulsiveness
A spendthrift trust can alleviate your worries if you are concerned about a loved one with irresponsible spending habits. They restrict access to inheritances, allowing for controlled distributions over time or based on certain milestones. These trusts ensure responsible use of the funds and protect your loved one’s financial security.
2. Ensure safety and comfort for furry friends
Pets hold a special place in families, and their future after you pass away can be a source of anxiety. Pet trusts offer solace by holding assets designated for their care. These funds cover expenses like food, vet bills, and even boarding, ensuring your beloved companion remains well-provided for, even in your absence.
3. Make a lasting impact on others
Are you passionate about specific causes? Charitable trusts enable you to continue supporting them beyond your lifetime. They act as separate entities that hold assets for distribution among your chosen charities. A charitable trust can help you fulfill philanthropic goals, and you may also enjoy tax benefits.
With its favorable trust laws, Delaware can be an ideal location for establishing these estate planning documents. Consulting with a legal professional experienced in trust creation and applicable state laws can help to ensure your trusts are effective and fulfill their intended purpose.
