A Trust is a vehicle which permits a person to control when and how another person uses or has access to an asset.
For example, a son who owns a house may want his mother to live in the house during her lifetime, but does not want to have her become the owner of the house.
A father may want to set up a fund for his child to go to college but does not want give the child the money to do so in advance.
Both of these objectives, as well as many others, can be attained through the use of a Trust.
There are 2 basic types of Trusts – irrevocable and revocable.
And 2 varieties of Trusts that are classified depending on when they are set up – testamentary and inter vivos – either upon death or while living.
- Trusts are set up to protect assets – either from creditors or the government (Medicaid or the IRS).
- Trusts can protect and aid loved ones – special needs Trusts and generation-skipping Trusts.
- Trusts can be used for charitable giving purposes.
Mr. Humber has years of experience in the establishment, funding and administration of Trusts. In addition, with his tax background, he is able to analyze how the establishment of a Trust will affect your potential income or estate tax liability.