Estate Planning - Are you ready for a trust? 

Here are a few examples of what trust's "do" and why you should have one...

Unburden Declining Family Members

Who among us doesn't know of beloved family members whose capabilities are failing to the point that they are no longer capable of competently managing their day-to-day finances and their investments? A simple trust or an agency account combined with a limited power of attorney can allow such persons to enjoy independent living while their still-enduring social skills can carry them through a daily routine.

Reduce Taxes

Without a trust, a husband and wife may lose ½ of their allowable estate tax exclusion.

Increase Income

Sometimes a stock or a property grows in value but generates little, if any, income. A charitable giving trust arrangement allows for the sale of such an asset with little or no tax consequences. The proceeds can then be invested into a more productive vehicle that does generate income.

Avoid Probate and Maintain Privacy

Probate is an estate settlement process that is time-consuming, expensive and open to the public. A trust maintains privacy while avoiding needless settlement expenses and delays.

Resolve Marital Property Issues

Consider the concerns of a couple with a "blended marriage." The new husband and wife may both have children from a previous marriage and may have accumulated assets from that previous marriage as well. A trust can ensure specific assets are segregated and ultimately distributed to designated loved ones.

The three most common types of trusts...

A Revocable ("Living") Trust is one that can be changed at any time until a pre-determined "trigger event" (such as a death) occurs.

A Testamentary Trust is established by the terms of a will. Testamentary trusts are always irrevocable.

Charitable Giving Trusts are irrevocable because the federal government bestows significant tax benefits in exchange for an "iron-clad" legal commitment that the assets will benefit qualified charities either now or later. Generally, the only thing that can be amended is the designated charitable beneficiary if this power is written into the document.

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