A trust is a legal relationship between 2 people where the trust grants the trustee the right to manage their assets. When estate planning in Kansas City, our team at Schwantes Financial can help you set up trust accounts in the names of your beneficiaries.
Making trust accounts can help minimize taxes because it gives you the ability to pass on your wealth before death, leaving fewer assets to tax. When assigning trusts, there are 6 different categories.
Revocable or irrevocable- If a trust is revocable, it means that the trustor can remove it, whereas an irrevocable trust is permanent.
Living or testamentary- If the trustor establishes the trust during their lifetime, then it is a living trust. If they don’t create the trust during their lifetime and instead establish it in their will, then it is a testamentary trust.
Funded or unfunded- A funded trust is when the trustor puts assets in the trust while they’re still alive, while an unfunded trust has no funding. An unfunded trust has the ability to gain funding after the trustor dies, depending on how it is set up. Our team can help you set up various types of trusts with your beneficiaries through our estate planning services.
