Trust
Estate Planning
Wealth, transferred to the next generation, can be one of the most significant blessings your legacy leaves behind. Many save and invest well over their lifetime, yet find themselves unsure how to tackle important decisions for their heirs.
A will, also known as a last will and testament, is a legal document that expresses a person's wishes regarding the distribution of their property, care for their dependents (such as minor children), and the appointment of an executor to carry out these wishes after their death.
Trusts are legal arrangements that allow a person (the trustor or settlor) to transfer assets to another person or entity (the trustee) to hold and manage those assets for the benefit of someone else (the beneficiary). Trusts can be used for a variety of things that can be very useful as an investor.
Types of Trusts
Revocable Living Trust
Irrevocable Living Trust
Irrevocable Living Trust
- Allows the trustor to retain control over the assets during their lifetime.
- The trust can be altered, amended, or revoked by the trustor.
- Typically used to avoid probate and provide for the efficient transfer of assets upon the trustor's death.
Irrevocable Living Trust
Irrevocable Living Trust
Irrevocable Living Trust
- Cannot be modified or revoked without the consent of the beneficiaries.
- Commonly used for estate tax planning, asset protection, and Medicaid planning.
- Once established, the trustor relinquishes control over the assets.
Charitable Trust
Irrevocable Living Trust
Special Needs Trust (SNT)
- Created for charitable purposes, with a designated charity or cause as the beneficiary.
- Can provide the trustor with tax benefits, such as income tax deductions or reduced estate taxes.
Special Needs Trust (SNT)
Special Needs Trust (SNT)
Special Needs Trust (SNT)
- Designed to provide financial support to individuals with disabilities without jeopardizing their eligibility for government assistance programs.
- Allows the individual to receive supplemental care and services without losing access to essential benefits.
Testamentary Trust
Special Needs Trust (SNT)
Testamentary Trust
- Created through a person's will and only takes effect upon the person's death.
- Commonly used to manage assets for minor children, with a trustee overseeing the distribution of assets according to the terms specified in the will.
Disclaimer
The information provided is not written or intended as specific tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.