An individual can definitely have more than one trust. The question of whether they should have more than one trust depends on each person. Almost every person can benefit from having a revocable living trust. There are multiple benefits if one has this type of trust set-up, with the most commonly known benefit being “avoiding probate”.
You can have more than one trust in Georgia, just as in most other U.S. states. Trusts are legal entities that allow individuals to transfer assets, property, or funds to a separate entity managed by a trustee for the benefit of designated beneficiaries. Each trust is a distinct legal arrangement, and you can create multiple trusts to achieve various financial and estate planning goals.
Different Types of Available Trusts & their Purpose
There are two basic types, although there are numerous uses and purposes for each. Trusts that are revocable (or changeable) and irrevocable (non-changeable) are the two fundamental forms. Additionally, “testamentary” trusts and “living” trusts exist. Living trusts are established while the beneficiary is still alive with the intention of helping them during the beneficiary’s lifetime.
Revocable or irrevocable living trusts are available. Testamentary trusts are created by a will and take effect after the Trustor/Donor passes away. Usually, these trusts are irrevocable. Other irrevocable trust forms exist for a variety of purposes, including asset protection, Medicaid qualification (which varies by state), Special Needs trusts, charitable trusts, tax avoidance trusts, and so on.
Here are some common reasons to set up multiple trusts:
- Diverse Estate Planning Goals: Different trusts can be established to achieve specific estate planning objectives. For example, you may create one trust to provide for the education of your children and another trust to distribute assets to your grandchildren.
- Asset Protection: Some individuals create separate trusts for asset protection purposes. For instance, they might establish one trust for their retirement savings and another trust for their real estate investments to shield these assets from potential creditors.
- Tax Planning: Trusts can be used for estate tax planning. Various types of trusts, such as irrevocable life insurance trusts or charitable remainder trusts, can be created to minimize tax liabilities.
- Special Needs Planning: Families with individuals with special needs might establish a special needs trust for the benefit of that family member. If there are multiple individuals with special needs, separate trusts may be warranted.
- Business Succession: Business owners can establish trusts for different aspects of business succession planning, such as a trust to provide for the buyout of business partners and another trust to ensure the smooth transition of the business to heirs.
Would I Lose Control Over My Assets If I Have a Trust?
It would depend on the type of trust and the purpose of the trust. With a revocable trust, the answer is no. If you completely give away your assets under an irrevocable trust and are not the trustee of that trust, however, you would lose control over assets.
There are some ways that you can retain a level of control, even where you give away the assets. This is where an Estate Planning Attorney can help you.
Get Help Today & Consult with an Estate Planning Attorney
It’s important to note that each trust is a separate legal entity, and they may have different trustees, beneficiaries, and terms. The specific type of trust, its purpose, and the assets involved will determine how it operates and the legal and tax implications. We will offer you the support and guidance you need at Hurban Law.
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