The Roles of Trusts: Preservation, Tax-readiness, Clarity

Designed to preserve your wealth - and your intentions for it - trusts are precise, tax-efficient tools that can help ensure your hard work is paid forward in the ways you envision.

Below are a few types of trusts and their key features. Working closely with us and an estate planning attorney to build a trust strategy tailored to you can help maintain your wealth’s momentum from one generation to the next.

Living Trust

• Established by an individual (grantor) and takes effect during their lifetime

• Beneficiaries can be individuals, other trusts or wealth preservation instruments

• Managed by a trustee on behalf of beneficiaries based on the grantor’s wishes

• Revocable living trusts can be canceled or changed at any time, irrevocable living trusts cannot and are typically used to provide tax savings and protect assets

Marital Trusts

• Established by one spouse (grantor) with the other named as beneficiary

• Can maximize tax efficiency if an estate exceeds the federal exemption

• Helps protect and distribute assets within blended families

• Ensures grantor’s intentions are upheld in the event of the beneficiary’s remarriage

Life Insurance Trusts

• A trustee purchases a life insurance policy on an individual and names the trust itself as beneficiary

• At the individual’s death, insurance proceeds can be used to pay taxes and other expenses with remaining proceeds distributed according to the individual’s instructions

• Because the individual doesn’t directly own the insurance policy, the trust is not considered part of their taxable estate

If you’d like to explore trusts and their benefits, please contact us or we can discuss at your next review.