Trusts are powerful legal tools that can help you avoid probate, reduce taxes, control how your assets are distributed, and provide protection for loved ones. But not all trusts are the same. Choosing the right type depends on your family situation, financial goals, and estate planning needs.
Here’s a breakdown of the most common types of trusts used in Georgia, their key benefits, and when each is typically recommended.
1. Revocable Living Trust
What it is: A flexible trust you create during your lifetime. You can modify, add or remove assets, or dissolve the trust at any time.
Benefits:
- Avoids probate
- Maintains privacy
- Provides continuity if you become incapacitated
Best for: Families who want to simplify estate administration and maintain control over their assets while alive.
👉 Read: Worried About Probate? How a Revocable Trust Can Protect Your Family
2. Irrevocable Trust
What it is: A trust that cannot be changed or revoked after it’s created. You give up ownership of the assets placed in it.
Benefits:
- Offers asset protection from creditors
- Removes assets from your taxable estate
- Useful in Medicaid or long-term care planning
Best for: High net-worth individuals, asset protection, or Medicaid eligibility planning.
3. Testamentary Trust
What it is: A trust created by your will that only takes effect after your death.
Benefits:
- Allows you to control asset distribution to minors or dependents
- Can delay inheritance until children reach a certain age
Best for: Parents with young children or dependents who need guidance or financial oversight.
👉 Learn: Understanding Testamentary Trusts for Minors
4. Special Needs Trust (SNT)
What it is: A trust designed to provide for a person with a disability without affecting their eligibility for government benefits.
Benefits:
- Preserves Medicaid and SSI eligibility
- Allows for supplemental care and support
Best for: Families caring for a child or adult with disabilities.
5. Charitable Remainder Trust (CRT)
What it is: A trust that provides income to a beneficiary for a set period, then donates the remainder to a charity.
Benefits:
- Reduces income and estate taxes
- Supports philanthropic goals
- Provides lifetime income for you or a loved one
Best for: Donors looking to reduce taxes and give back to a cause they care about.
👉 Explore: Charitable Giving in Georgia Estate Planning
6. Credit Shelter Trust (Bypass Trust)
What it is: A trust that allows married couples to maximize estate tax exemptions.
Benefits:
- Avoids federal estate taxes (if applicable)
- Protects assets for surviving spouse and heirs
Best for: Couples with large estates who want to reduce or avoid estate taxes.
👉 Learn More: Credit Shelter Trusts in Georgia
Final Thought
There is no one-size-fits-all trust. The right trust depends on your life stage, asset structure, goals, and the needs of your family. Some trusts offer flexibility, others provide protection, and some are designed to support long-term planning or charitable giving.
At Hurban Law, LLC, we help Georgia families choose and structure the right trust for their situation. Whether you’re starting from scratch or updating an existing estate plan, we can guide you every step of the way.
Contact us today to explore your trust options with a professional.
