Classification of a Trust
In addition to the broad classifications of trusts — revocable and irrevocable, living and testamentary — there are further classifications of trusts based on their purpose and the characteristics that help them fulfill that purpose.
Our Bay Area trusts lawyers at Fox, Shjeflo & Babu LLP understand the various types of trusts are skilled at advising clients about how to use those trusts to meet their financial goals.
Types of trusts
These are just some of the types of trusts with which our firm can assist you:
- Spendthrift trust. A spendthrift trust is useful when giving a gift to a beneficiary who is not good with money or has trouble with creditors. Adding a spendthrift provision to a trust instrument prevents the beneficiary from voluntarily or involuntarily assigning or selling his or her interest in the trust. In addition, this provision may give the trustee discretion to withhold disbursements if he or she is concerned that the beneficiary is wasting the money.
- Special needs trusts. People usually establish special needs trusts for the benefit of a disabled or elderly person who receives government assistance such as Medicaid. A trusts lawyer in the Bay Area can specially draft a trust to provide income to such a beneficiary without interfering with his or her qualification for government assistance.
- Charitable trusts. Unlike most other types of trusts in San Francisco, a settlor of a charitable trust does not need to name a specific beneficiary. These trusts are also often exempt from complex legal requirements governing the length of time a trust can exist. Instead, charitable trusts contribute money to charitable pursuits in accordance with the terms of the trust and, to some extent, the discretion of the trustee.
In addition, a multitude of recognized trust types are available that are designed to lessen the burden of the federal estate tax and to minimize other tax liabilities. At Fox, Shjeflo & Babu LLP, we can help you with all aspects of estate planning — from setting up a living trust to handling probate matters. Trusts can range from very simple to very complicated and can have multiple purposes, and our attorneys are skilled at helping clients navigate the details