A Michigan resident might form a trust during estate planning. The trust gives a third party (the trustee) the right to hold assets on behalf of one or more beneficiaries. When the time comes, the trustee distributes the assets as instructed by the trust.
The purpose of the trust is to give the trust creator control over to whom and when assets are distributed. But different people have different estate planning needs. You might discover that you have a situation that requires a less common type of trust. Below are some trusts that you might find surprising.
Gun trust
You might hear this trust described as an NFA trust. You can include any legal weapon in a gun trust. But it’s specifically for weapons classified by the National Firearms Act.
Pet trust
A pet trust provides financial support for the care of a pet. The trustee is responsible for the pet receiving care as instructed in the trust. If you feel your pet is part of the family, you might want to include them when planning your estate.
Asset protection trust
An asset protection trust shields your assets from creditors. It also protects assets from lawsuits or judgments against your estate. Michigan is one of 17 states that allows the creation of a domestic asset protection trust.
Constructive trust
A constructive trust is an implied trust based on the intentions of the asset owner. The asset owner can’t create this trust. However, a court can create this trust when it’s known certain property is for a specific person or purpose.
Retain control of your wealth
Estate planning is an important task, and there are many options at your disposal. A trust is only one of several ways to have more control over your assets.