A layered trust is a type of trust that allows the grantor to make a second trust the beneficiary of the first trust and so on. Layered trusts give the owner of the trust the ability to provide grandchildren, great grandchildren and subsequent generations while at the same time leaving assets to a surviving spouse.

Use layered trusts whenever someone wants to take advantage of certain tax benefits or provide for a variety of contingencies such as a spouse, children, remarriage, creditor issues or tax purposes. Create layered trust documents to:

1. Provide for grandchildren or subsequent generations through a layered trust.

2. Take advantage of certain tax benefits by having multiple beneficiaries.

3. Deal with a variety of contingency issues through layered trust documents.

Action Steps
The best contacts and resources to help you get it done

Find layered trust information from layered trust specialists

A layered trust is a complex estate planning tool. To get the most benefit from this type of trust requires the right trust language. Getting the right layered trust advice means better layered trust management and appropriate control over trust assets for the benefit of your loved ones.

I recommend: Use Find an Attorney by clicking on your state and “Trusts and Estates” in the type of law field to find trust experts near you. Try Attorneyfind.com by clicking on "Trusts and Estates" for areas of practice and the state in which you live.

Create layered trust documents with online tools and resources

Because a layered trust can be both an irrevocable living trust or revocable, depending on what type of trust you have, they are relatively easy to produce with the right online tools and forms. Do it yourself trusts are a great resource when time is an issue and a trip to the attorneys office isn't possible.

I recommend: Both Free Legal Forms and Findforms.com offer a variety of free and fee based trust documents and estate planning packages. Use living trust forms from these websites to create a layered trust.

Work with a layered trust expert to determine if a layered trust is right for you

During life's most difficult moments, getting the right answers before you need them is priceless. Layered trust management can be confusing without the right expert services on your side. Choosing a qualified trust and estate attorney takes the worry out of making the right choices for your particular situation.

I recommend: Kirkland & Ellis and Dorsey & Whitney are global law firms with large estate planning and trust divisions to meet all your trust planning needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Any type of trust requires a higher level of capacity than that of 'sound mind' applicable to wills. The required capacity is similar to contractual capacity such as that needed to sign a deed.
• •  Notarize any type of trust, including a layered trust, in case it needs recording with the Register of Deeds.