5 Types of Trusts AND A BRIEF GUIDE TO TRUST VOCABULARY
We’ve all heard the phrase “trust fund baby,” usually used derisively as a way to describe somebody who’s had everything in life handed to them. Given how commonplace the term is, you may be surprised to learn that trusts aren’t just for the uber-wealthy. They can serve many different purposes and prove useful for all types of estates. Before we list some categories of trusts, let’s lay out a few of the basic terms surrounding them. The person who creates the trust is called the grantor; the person who manages it is called the trustee; the people who put assets into it are called donors; and the people who receive those assets are called beneficiaries. Now that the terminology is clear, here are five types of trusts worth considering. BYPASS TRUSTS These trusts are the ones you’re probably most familiar with. They are designed as a way for wealthy individuals to pass on as much money as possible to their heirs without having to pay estate taxes. GENERATION-SKIPPING TRUSTS Essentially, these are multi-generational versions of bypass trusts. They allow grantors to name beneficiaries far down the genealogical line, protecting assets for grandchildren and even great-grandchildren.
SPECIAL NEEDS TRUSTS Designed to help people who cannot care for themselves, a special needs trust can be used in conjunction with social programs to provide a comfortable life for loved ones with extensive needs. SPENDTHRIFT TRUSTS These trusts don’t just dictate who will receive assets, but also how they will spend them. The grantor can create provisions to distribute assets to beneficiaries when they reach a certain age in the form of an allowance or for specific expenditures. It’s a great option for those who don’t want to allocate assets to their beneficiaries in a lump sum. QUALIFIED TERMINABLE INTEREST PROPERTY (QTIP) TRUST A QTIP is a way to provide for a spouse while still protecting assets for your children. It allows the grantor to distribute a certain amount to a surviving spouse without granting them control of the trust’s contents. Put another way, it ensures that your children receive what you intended for them, no matter what happens after you’re gone. These are just brief overviews, and we don’t have the space to list all the relevant types of trusts available. To learn more about trusts and how they could benefit your estate, call our office today.
CHICKEN CHOP SUEY MICHELE’S RECIPE CORNER
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• 2 large or 4 medium chicken thighs • 3 pounds bok choy, cut into 3–4-inch ribbons • 4 tablespoons vegetable oil • 3 tablespoons oyster sauce INGREDIENTS DIRECTIONS
• 2 teaspoons sugar • 2 tablespoons cornstarch, mixed with 4 tablespoons water • 2 teaspoons toasted sesame oil • Salt and pepper, to taste
1. In large pot, boil three cups of water. Add chicken and reduce to simmer, cooking for 30 minutes. Remove chicken and let cool. Once cooled, remove skin and bones, chop, and set aside. Reserve the cooking liquid. 2. In a large skillet over high heat, heat vegetable oil. Once simmering, add bok choy and cook for 1 minute, stirring throughout. Add half of reserved cooking liquid, cover skillet, and cook for 2 minutes. Remove cover and cook for an additional 5 minutes. Transfer bok choy to a plate. 3. Add remaining cooking liquid and chicken to the pan, maintaining high heat. Heat chicken, then add oyster sauce, sugar, cornstarch-and-water mixture, sesame oil, and bok choy. Season to taste, toss together, and serve over rice.
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