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Different types of trusts you can have in Arkansas

On Behalf of | Aug 31, 2022 | Trusts

Trusts are a popular estate-planning tool for a reason: They offer a lot of flexibility and can be tailored to meet the needs of almost any family. But, with so many different types of trusts available, it can be difficult to know which one fits your specific estate-planning goals in Arkansas.

Trusts for asset protection

If you are concerned about your assets being seized by creditors or lawsuits, you may want to consider creating an Asset Protection trust. These trusts are designed to shield your assets by severing the connection between you and your assets.

Special Needs trusts

If a family member has special needs, you may want to consider establishing a Special Needs trust. This type of trust can provide for their care without jeopardizing their eligibility for government benefits, like Medicaid and Social Security.

Discretionary trusts

Discretionary trusts give the trustee (the trust manager) a great deal of discretion when it comes to distributing the assets of the trust. This type of trust is often used when the grantor wants to provide for someone but does not want to give them complete control over the assets. The trustee will decide how much and when to start giving the beneficiaries funds or property from the trust.

Charitable trusts

A Charitable trust is a type of trust that is used to benefit a charity. There are two main types of charitable trusts: those that provide an income for the charity (Charitable Remainder trusts) and those that make a lump-sum payment to the charity upon the death of the grantor (Charitable Lead trusts).

Of course, this is not an exhaustive list. There are more than 15 different types of trusts, each with its own set of specific benefits. Some help to minimize estate taxes, and almost all of them ensure that your beneficiaries are well taken care of after your passing.