Sunday, January 5, 2014
Here are six unusual trusts you may want to use if you have everything else:
- Secret Trusts. These trusts aren’t really an estate planning technique; they are an often unsuccessful attempt by disappointed heirs to convince the court that the grantor of a trust really had different intentions than those reflected in writing.
- Totten trusts. These are a form of pay-on-death accounts created when an account holder designates one or more beneficiaries to receive a bank account upon the creator’s death.
- Purpose trusts. These trusts are not established for the benefit of human beneficiaries. They are most often established for the care of pampered pets.
- Funeral trusts. These trusts are basically an arrangement between the grantor and a funeral home or cemetery to prepay funeral and burial expenses.
- Blind trusts. Typically used by politicians and business executives, blind trusts strictly limit communications between trustees and beneficiaries.
- Rabbi trusts. These trusts can be used by executives to postpone receipt of compensation in order to minimize income taxes.
See Wendy S. Goffe, Six Trusts for the Person Who Has Everything Else, Forbes, Jan. 2, 2014.