Financial Planning Insights

A trust is a legal contract that plans for the distribution of an individual's assets upon their death. The document states that a trustee will hold all property until a given point in time. Unlike a will, a trust won't be subject to probate. This ensures that the estate's closing is quicker, there are no court fees, and results in reduced estate..

Trusts fall into two seemingly simple categories: revocable or irrevocable. However, things get more complicated from there. One type of irrevocable trust is a Qualified Personal Residence Trust. This is useful because the value of the home is not counted as part of your estate when it is in this trust. Timing is crucial when using a QPRT to pass..

First off, you may be wondering what an irrevocable trust is; or you may be unfamiliar with trusts in general and need to know more before considering one. Essentially, a trust is a legal arrangement that provides for the ownership, management, and distribution of your property for the rest of your life, as well as after you are gone.