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Personal Trust
Trusts are amazing planning tools that can be used to attain many
financial goals. Inclusion of one or many of the following trusts
in your own personal plan could ensure tax savings, asset protection,
financial security and preservation of family relationships:
- Revocable Living Trusts
- Irrevocable Living Trusts
- Testamentary Trusts
- Life Insurance Trusts
- Charitable Remainder and Lead Trusts
A trust blends all of the benefits of professional
investment management with the personal attention of a professional
trust administrator. With a revocable living trust, you are guaranteed
that should you become physically or mentally incapacitated, your
bills will be paid, your affairs managed, and your investments monitored,
thereby avoiding the impersonal intervention and expense of a court-appointed
conservatorship. At death, your trust may continue for the benefit
of a surviving spouse, child, or grandchildren, or distribute out
to your beneficiaries under your trust document. Assets in trust at
death avoid the necessity of probate.
A testamentary trust can be a vital tool for preserving
important estate tax savings and as a means for managing principal
and income for the benefit of your surviving spouse and/or minor children
based on their needs and ability to manage money. Perhaps there are
beneficiaries with "special needs". Trusts for the lifetime
care of a disabled beneficiary are designed to maximize supplemental
support while preserving eligibility for public health care programs.
There are also trusts established to carry out family business succession
plans and to take advantage of elections which reduce the burden of
transfer taxes from one generation to the next.
Federal income tax laws encourage charitable
giving by providing trust options that return a lifetime income benefit
to the donor in exchange for an irrevocable contribution of property.
This same income benefit can pass to a surviving spouse or other named
beneficiary for his or her lifetime, as well. The principal of the
trust will be available for the use of the charity at some point,
fulfilling your goal of benefiting your favorite organizations while,
at the same time, enjoying a reduction in taxes. At death, charitable
gifts can provide a further reduction in federal estate taxes.
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