Are There Different Kinds of Trusts in KS?

A trust can be a valuable aspect of a comprehensive estate plan. There are many benefits of trusts that supplement wills and other estate planning documents, but a trust must be tailored to your specific circumstances and goals.

The first step is determining which type or types of trusts are right for your situation. Learn more about trusts and estate planning by consulting with a Kansas estate planning lawyer today.

Trust Options for Kansas Estate Plans

Kansas law offers a range of trusts that cater to various estate planning needs. Here are some of the different types of trusts commonly utilized in the state:

• Revocable Living Trust - This trust allows individuals to retain control over their assets during their lifetime. They can make amendments or revoke the trust if circumstances change. Upon the grantor’s passing, assets are distributed according to the trust’s instructions, bypassing probate.
• Irrevocable Living Trust - Once established, this trust generally cannot be altered or revoked without the consent of the beneficiaries. Assets placed in an irrevocable trust are typically shielded from estate taxes, offering potential tax advantages.
• Charitable Remainder Trust (CRT) - A CRT allows a grantor to donate assets to a charitable organization while retaining an income stream from those assets during their lifetime or for a specified period. Afterward, the remaining assets go to the designated charity.
• Charitable Lead Trust (CLT) - In a CLT, a grantor designates a charitable organization to receive income from the trust for a specified period. Once that period concludes, the remaining assets are distributed to non-charitable beneficiaries, often family members.
• Special Needs Trust - This trust is designed to provide for individuals with disabilities while protecting their eligibility for government benefits. It allows them to receive supplemental assistance without jeopardizing essential programs like Medicaid or Supplemental Security Income (SSI).
• Testamentary Trust - Created within a will, this trust comes into effect upon the grantor’s passing. It allows for the management and distribution of assets for the benefit of specific beneficiaries, such as minor children.
• Family Limited Partnership (FLP) and Family Limited Liability Company (LLC) - While not trusts, these entities are commonly used in estate planning. They allow families to consolidate and manage assets while maintaining control and potentially reducing estate taxes.
• Qualified Terminable Interest Property (QTIP) Trust - This trust is often used in second marriages or blended families. It provides for a surviving spouse while ensuring that the remaining assets ultimately pass to children from a previous marriage.
• Generation-Skipping Trust - This trust enables assets to pass directly to grandchildren or more remote descendants, bypassing the grantor’s children. It can provide tax benefits and protect assets from potential creditors of the grantor’s children.
• Dynasty Trust - A dynasty trust is established to provide for multiple generations. It can perpetually hold and protect family wealth from estate taxes and potential creditors, ensuring it benefits several generations.

Discuss a Possible Trust with a Kansas Estate Planning Attorney

Each type of trust serves a unique purpose, and selecting the right one depends on your specific goals, family dynamics, and financial situation. Consulting with our experienced estate planning attorneys in Kansas is crucial to creating a trust that aligns with your wishes and offers the greatest benefits for your loved ones. Vinton Moore is ready to help, so please contact us today.