Your primary estate planning goals may involve asset preservation and transferring property to your loved ones, but you can do much more. For example, you can execute documents (advance directives) that allow you to control your healthcare regardless of your condition.
Adding trusts that address specific concerns or situations is another way to custom-tailor your plan, allowing you to rest easy knowing your final wishes are secure. Here are three types of trusts to consider.
Pet accommodations
Our furry companions enrich our lives with unconditional love and loyalty. But what happens when you are no longer around to care for them? That is where pet trusts come in, offering peace of mind and practical solutions for their well-being.
As long as you fund and maintain the trust, you won’t have to worry about your pet’s future anymore.
Charitable gifting
Charitable trusts offer a unique way to continue supporting causes you care about even after you have left the world. These trusts act as legal entities that hold assets, with income generated used to fund charitable purposes you designate.
As a possible bonus, you could enjoy tax benefits by setting up charitable trusts.
Spendthrift control
Do you have a reckless spender in your family? You may worry they will spend away their inheritance after you die, but a spendthrift trust can help. It restricts how much the beneficiary can access at any one time.
You can tailor the trust with specific provisions, ensuring a strategic and gradual flow of funds to your loved one.
These and other types of trusts are allowed in Tennessee, a state with favorable trust laws. Legal guidance can help to ensure your trusts comply with these laws and protect all you hold dear.