{"id":2007,"date":"2019-07-09T00:00:00","date_gmt":"2019-07-09T00:00:00","guid":{"rendered":"https:\/\/wordpress-257273-2704704.cloudwaysapps.com\/newsletters\/niche-trusts-as-unique-as-you-are\/"},"modified":"2019-07-09T00:00:00","modified_gmt":"2019-07-09T00:00:00","slug":"niche-trusts-as-unique-as-you-are","status":"publish","type":"newsletters","link":"https:\/\/wiroweklaw.com\/newsletters\/niche-trusts-as-unique-as-you-are\/","title":{"rendered":"Niche Trusts: As Unique as You Are"},"content":{"rendered":"

You\u2019re not a carbon copy of your neighbor. Likewise, your estate plan shouldn\u2019t be a carbon copy of theirs.
 
A qualified estate planning team\u2019s approach to counseling will be tailored to your specific needs. As your team works together to produce, tailor, or edit your estate plan, one key tool to consider is the niche trust.
 
What is a trust?
 
Usually when we speak about a trust, we mean an \u201cexpress trust.\u201d An express trust is a three way relationship between the grantor, the beneficiary or beneficiaries, and the third party, or trustee. The grantor has assets he or she wishes to distribute in a specified way to the beneficiary, and the trustee holds those assets on behalf of the beneficiary.
 
Your assets, financial needs, and wishes are particular to you, so your attorney\u2019s use of trusts needs to be a nuanced strategy. Enter the niche trust. These trusts are designed for very special situations and fulfill certain particular needs. Your attorney can help you decide which of them may be right for you.
 
Health and Education Exclusions Trust (HEET)<\/b>
This trust is tailored to help you avoid paying gift tax on tuition and medical care expenses for individuals two or more generations younger than you (grandchildren, great-grandchildren, etc.). Tuition payments made from a HEET Trust directly to an educational institution on behalf of one of these beneficiaries are not subject to gift tax.  Similarly, payments made directly to a medical care provider that are not reimbursed by the donee\u2019s insurance are not subject to gift tax. However, in order to qualify for these benefits, at least one beneficiary of the trust must be a charitable organization.
 
These payments, if made on behalf of a \u201cskipped person\u201d from a non-Generation Skipping Transfer Tax (GSTT)-exempt trust are not considered GSTT transfers. This is a great option if you have already used your GST exemption.
 
Pet Trust<\/b>
This trust can either stand alone or be part of a revocable living trust. Pet trusts are used to provide for the care of pets after you pass or during any period of incapacity, and to appoint someone to care for them. A pet trust also nominates someone to handle disbursement of funds to cover pet care.
 
Gun Trust<\/b>
A gun trust is used to pass firearms to heirs in compliance with state and federal regulations and outside of probate. Due to the regulations and penalties for violating state and federal firearms regulations, it is crucial that you work with a qualified estate planning attorney when planning for the distribution of firearms.
 
Incentive Trust<\/b>
With an incentive trust, assets are held for the benefit of a beneficiary who must meet certain requirements before a distribution will be made. These trusts are put in place by you, the grantor, and certain requirements defined by you must be met prior to the distribution of any of the principal or income. For example, you could stipulate the funds be distributed:<\/p>\n