Many people in Washington State have heard or read virtual horror stories about how family members end up feuding both in court and out of court over the assets left by a deceased parent, step-parent or other relative. These situations can happen in nuclear families and blended families alike and make the need for a solid estate plan highly important. Even if you don’t believe that your kids or stepchildren would engage in such behavior, it is more than worth your time to learn about some unique ways of helping to guard against this.
As CNN Money explains, there are many types of trusts that you can establish and which one is right for you can depend on multiple factors. If you are in a second or subsequent marriage, one of your concerns might be making sure that your current spouse is properly provided and cared for if you die first. While this might be of concern to your children or grandchildren, you may be able to form a trust that takes care of your spouse without totally eliminating your other heirs.
This is called a Qualified Terminable Interest Property trust. Also referred to as a QTIP trust, this allows your surviving spouse to receive income from your estate after you die. Then, after your spouse dies, remaining assets may flow to your children or other heirs.
If you would like to learn more about the different types of trust you may be able to set up to provide for your loved ones in the way you want, please feel free to visit the trust and asset planning page of our Washington State estate planning website.