A trust may seem like a bit of a mystery to many people, but in fact, trusts are usually rather simple solutions that can help people with significant assets accomplish some important goals. They can be an effective tool for managing your assets during your lifetime and for the benefit of your loved ones after you are gone. Utilizing a trust ensures that your assets are administered without disruption and passed to the next generation according to your instructions.
A trust can provide significant advantages to high net worth clients including:
There are several different types of Trusts. We can assist you in deciding which is best for your unique situation:
A Revocable Living Trust is established during your lifetime and gives you maximum control, flexibility and independence in managing your estate during your lifetime and beyond. Income earned is distributed to you, and only after your death will the property transfer to the beneficiaries, outright or in trust. It gives you full access to your assets and can be amended or terminated anytime during your lifetime. In addition, a revocable living trust is private and confidential compared to a will that goes through probate and is made part of public record.
An Irrevocable Living Trust is one which is established during your lifetime, and although these types of trusts cannot be altered or terminated once they have been established, the potential tax savings they provide can be an important consideration for individuals wishing to protect a large estate from costly tax liabilities.
A Testamentary Trust, also known as a Trust Under Will, is created by your will and receives your assets upon settlement of your estate. It is designed to accomplish any vision you have for the future-providing income for your family, directing funds for a child's education, or leaving a lasting legacy to your favorite charity.
An Irrevocable Life Insurance Trust can be structured to purchase life insurance on your life and provide estate tax free funds for heirs at your death. Your family may use these life insurance proceeds to provide liquidity to pay estate taxes.
Charitable trusts can be set up to benefit a charity while allowing you to reduce your taxable income and in effect, reduce estate taxes, eliminate capital gains, and claim an income tax deduction. There are many types and variations of charitable trusts.
Special Needs Trusts provide for additional or special services and treatments to individuals with disabilities and preserve their government benefit eligibility. These individuals are likely to have long-term medical or support needs and the Special Needs Trust can be a vehicle to supply the funding to provide lifetime quality care.
