As pertains to disability, understanding what a trust is and how it operates are important to not only families with disabled loved ones but all families.
Trusts use a form of bifurcated (2 part) ownership. An individual referred to as the Settlor transfers his/her property (real estate and/or money) to an individual (or institution) referred to as the Trustee. The Trustee manages the property for the benefit of the beneficiary (another person). The two-part ownership would be the Legal and Equitable. Legal Ownership is with the Trustee, while the Equitable Interest (having a right to the enjoyment of the property) is with the beneficiary.
The most common types of trusts are mandatory, support, discretionary and spendthrift. The mandatory, support and spendthrift trusts would not be the type to establish for those with disabilities if maintaining public benefits such as medicaid and SSI are important. It would be the discretionary trust that is of importance to families with disabled loved ones.
The discretionary trust will be discussed tomorrow. Contact us at http://www.ythlaw.com/ if you have questions or would like to schedule an appointment to discuss your estate planning, probate and elder law needs.
Trusts use a form of bifurcated (2 part) ownership. An individual referred to as the Settlor transfers his/her property (real estate and/or money) to an individual (or institution) referred to as the Trustee. The Trustee manages the property for the benefit of the beneficiary (another person). The two-part ownership would be the Legal and Equitable. Legal Ownership is with the Trustee, while the Equitable Interest (having a right to the enjoyment of the property) is with the beneficiary.
The most common types of trusts are mandatory, support, discretionary and spendthrift. The mandatory, support and spendthrift trusts would not be the type to establish for those with disabilities if maintaining public benefits such as medicaid and SSI are important. It would be the discretionary trust that is of importance to families with disabled loved ones.
The discretionary trust will be discussed tomorrow. Contact us at http://www.ythlaw.com/ if you have questions or would like to schedule an appointment to discuss your estate planning, probate and elder law needs.
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