DEFINITIONS
Mottola Law Office PLLC

Trusts

      A Trust is a legal entity that an individual creates during their life or upon their death. The

trust can own assets such as a home, bank or brokerage account, CD or life insurance policy. There are several kinds of Trusts and each serves a slightly different purpose.

 

Revocable or Living Trusts

Revocable Trusts can be used to avoid probate. In most instances, probate avoidance is not worth the cost of the Trust, however, for people who own property in multiple states, or may have medicaid recovery upon their death or  have unknown heirs or anticipate a will contest, they are necessary.

Irrevocable Trusts

Irrevocable Trusts are used to protect assets against the cost of long term care, including the cost of a home health aide or nursing home. With an  Irrevocable Trust you can continue to live in your home or change beneficiaries in the event of death.  After five years the asset is no longer considered if Medicaid is needed.

 

Supplemental  Needs Trusts

Supplemental needs trusts are used to provide for the needs of an individual who is disabled and receives or may receive SSI or Medicaid. Assets in the Supplemental Needs Trust can be used for the benefit of the individual without affecting that person's eligibility for SSI and Medicaid.

Insurance Trusts and Credit Shelter Trusts

Estate Planning strategies used to limit an estate tax liability.

Minor Trusts

Minor trusts are often used to set aside money for your children to use when they are old enough to handle it responsibly.

Spendthrift Trusts

If you have an adult child with financial issues or simply want to provide them with an income stream for a period of time, a spendthrift trust will allow you to protect any possible inheritance from their creditors and provide them with a structured plan of distribution.

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