Many Arkansas residents want to use their estate plans to protect their assets. This desire is common and wise as estate planning can work to protect assets in various ways. In particular, individuals may use various types of trusts to ensure that their assets are managed the way they desire.
One type of trust that some parties may consider using is a disclaimer trust. This type of trust is created after a person’s passing, and the disclaimer is usually left in the person’s will. The disclaimer allows the surviving spouse to put assets into the trust without facing taxation as long as he or she disclaims ownership of those assets. The trust could then be used to benefit other parties, such as the deceased’s children.
Of course, some complications could arise when using this type of trust. For instance, a spouse may not disclaim ownership of some of the estate, and as a result, it will not pass to the trust. In such a scenario, the intended beneficiaries of the trust will not receive any benefits. In some cases, this type of issue could cause legal problems for the estate and its beneficiaries.
Because trusts can be complicated estate planning tools, it is important to have the right information when trying to incorporate trusts into one’s plans. Fortunately, legal professionals fully understand the use of trusts and the different types and can help interested parties determine what type of trust could best suit their needs. Experienced Arkansas attorneys can also help explain the possible complications that could arise from using certain planning tools.