What is a two trust plan?

Answer 1

A two trust plan typically involves the establishment of two separate trusts for estate planning purposes: one for asset management during the individual's lifetime and another for distributing assets after death. The first trust is often revocable, allowing the grantor to maintain control and make changes as needed, while the second trust is usually irrevocable, providing tax benefits and asset protection. This arrangement helps in efficiently managing assets, minimizing estate taxes, and ensuring a smooth transition of wealth to beneficiaries.