Lifetime Trust: Care For Loved Ones In Need
A lifetime trust is a trust established to hold assets for the benefit of a particular beneficiary during that beneficiary’s lifetime, while ultimately directing those assets to others at the time that the beneficiary passes away.
Example 1: Imagine you want to provide financial assistance to your elderly parent, but you want control of the remaining assets after your parent’s death. You can establish a trust with a portion of your estate assets to provide for your parent’s medical care until such time as they pass away, and then direct (in the Trust) that the remaining assets be distributed back to your own children.
Example 2: You want to provide financial assistance to one of your adult children with a substance abuse problem.