An inheritance trust is a type of trust that is made for the purpose of further protecting the assets that are to be delegated as part of a trust by the recipient the assets. An inheritance trust is meant to protect the assets from creditors and from being subject to affecting estate taxes. However, there are various inheritance trust rules in place, which vary from state to state.
An inheritance trust may be an option for some if an inheritance is expected. this will allow for protect the assets from creditors and allow the recipient access to those assets as necessary. Inheritance trust rules also allow for the assets to be removed from a person’s estate so they will not be subject to federal estate taxes upon the recipient’s death. An inheritance trust is received in the circumstance that a trust has been established by another person, such as a parent or grandparent.