Trusts Tailored to Your Needs and Goals
HELPing protect your loved ones and property
Trusts are legal entities created to hold and transfer property and can help protect assets from the claims of creditors or prevent beneficiaries from making unwise choices with the assets they inherit. Distributing assets after your death via a trust can also keep the details of your estate confidential, unlike the public probate process that is used for wills.
There are several types of trusts, with each offering situation-dependent pros and cons. These trusts include:
- Revocable Living Trust — A revocable living trust may be the foundation of your estate plan instead of a will. As the grantor of a revocable trust, you can retain control of your assets during your lifetime and may revoke or revise the trust at any time. A revocable living trust is a flexible instrument that allows you to put conditions on gifts and provide an allowance for a beneficiary rather than distributing a lump sum. With a revocable living trust, you can enjoy your property during your lifetime and transfer wealth seamlessly after your death, helping your loved ones avoid probate.
- Irrevocable Trust — Once you establish this kind of trust, its assets no longer belong to you, and you cannot amend the trust without your beneficiary’s consent. However, any appreciated assets in the trust are not subject to estate taxes.
- Credit Shelter Trust — Also called bypass or family trusts, credit shelter trusts allow a grantor to place enough wealth in a trust for heirs so that the grantor can pass down the remainder of their wealth via a will that does not trigger an estate tax. The assets in the credit shelter trust are not subject to estate tax.
- Generation-Skipping Trust — Also called a dynasty trust, a generation-skipping trust enables a grantor to transfer a substantial amount of tax-free money to beneficiaries at least two generations below them. It can be an excellent way to provide a legacy for your grandchildren.
- Irrevocable Life Insurance Trust — This type of trust removes a grantor’s life insurance from the taxable estate. It can help to leave a tax-free legacy to loved ones.
- Qualified Terminable Interest Property Trust — A QTIP trust helps grantors in second marriages provide for the lifetime needs of a second spouse while preserving a legacy for children from the first marriage.
- Special Needs Trust — If someone in your family has a disability or special needs, this type of trust can be used to help meet future financial needs.