What are trusts and how do they affect inherited assets?

What are trusts and how do they affect inherited assets?

Trusts are legal arrangements where one party holds assets for the benefit of another. They can help manage inherited assets.

Can you explain the different types of trusts?

Sure! Common types include revocable trusts, irrevocable trusts, and testamentary trusts, each serving different purposes.

How does a trust protect inherited assets from taxes?

Trusts can provide tax benefits by allowing assets to grow without being taxed until distributed, potentially reducing tax liability.

What happens to a trust when the person who created it dies?

When the creator of a trust dies, the trust typically becomes irrevocable, and the assets are managed according to the trust's terms.

How can I set up a trust for my children?

You can set up a trust by consulting with an estate planning attorney who can guide you through the process and help you choose the right type.