- What Is a Gift in Trust?
You’ve worked hard your entire life and you’re hoping to pass the fruits of your labor onto your children or grandchildren and not the Internal Revenue Service. If that’s the case, you may be interested in a gift in trust,… read more…
- Estate vs. Trust: What’s the Difference?
Trusts and estates are the two main legal structures for transferring assets to your heirs and beneficiaries. Each works in critically different ways. Estates make a one-time transfer of your assets after death. Trusts, meanwhile, allow you to create an ongoing… read more…
- Family Trust vs. Living Trust: What Are the Differences?
One of the common estate planning tips for investors is to get a trust to protect their assets. However, that advice is hardly specific enough. There are many types of trusts, and each has its unique pros and cons. In… read more…
- What a Pet Trust Is and How It Works
When it comes to pets and estates, there are two main rules to understand. First – and sadly for the eccentric among us – you cannot leave money to your pet. The law says that animals are property, and one piece… read more…
- Crummey Letter: Trust Definition and Requirements
Crummey trusts can be a useful estate planning tool for high-net-worth individuals who are hoping to minimize gift and estate taxes. The Crummey power confers the right to withdraw assets from the trust to its beneficiaries, though this power isn’t… read more…
- Intentionally Defective Grantor Trusts and Taxes
An intentionally defective grantor trust, or IDGT, is a way of shifting tax burdens for very wealthy households. With this structure, you can create a trust that leaves wealth to your heirs while minimizing gift, estate and income tax liability. Find out how the IDGT works and what tax advantages may exist if you decide… read more…
- What Is a Qualified Perpetual Trust?
Trusts can be a useful tool in estate planning when you want to leave specific instructions about how your assets should be managed during your lifetime and after you pass away. One type of trust, the qualified perpetual trust, can be used to pass assets down to your beneficiaries decade after decade. Also known as… read more…
- What Does a Trust Protector Do?
Establishing a trust is something you might consider if you’d like to take estate planning beyond a simple will. Naming a trustee is an important part of the trust creation process but you might find it helpful or necessary to name a trust protector as well. Trust protectors serve as intermediaries between the trustee and… read more…
- How Do Offshore Trusts Work?
An offshore trust is a tool used for asset protection and estate planning that works by transferring assets into the control of a legal entity based in another country. Offshore trusts are irrevocable, so trust owners can’t reclaim ownership of transferred assets. They are also complicated and costly. However, for people with greater liability concerns,… read more…
- Revocable Living Trust vs. Will: Key Differences
Revocable living trusts have become an increasingly popular tool in estate planning. They’re often used by households to avoid the probate process, which in some estates can save heirs both time and money. However, while trusts are a popular option, often a will is the better one. That’s particularly true for simple or relatively small estates.… read more…
- Does a Living Trust Need to File a Tax Return?
A living trust is a common solution for many people with estate planning needs. However, few people know about its tax-filing requirements. Generally, any trust with at least $600 in annual income must file a federal return. But for a… read more…
- Is an EIN Required for a Trust After Death?
Losing a family member can be an emotional and trying experience for everyone affected. Unfortunately, tax problems brought on by a trust can sometimes be an added stressor. Because grantors don’t always acquire an employer identification number (EIN) for their trusts, their heirs or beneficiaries may have to do so after the fact. If the grantor… read more…
- How to Protect Assets From Nursing Home Costs
As healthcare costs continue to rise, many individuals and families are seeking effective strategies to protect their assets. Knowing how to safeguard your financial resources is crucial for ensuring peace of mind and preserving your legacy for future generations. Below, we’ll explore various methods to protect assets from nursing home costs, including legal tools such… read more…
- How Does a Bare Trust Work?
Parents and grandparents looking for a way to pass assets to their beneficiaries should consider a bare trust, also known as a naked trust or simple trust. It is one of the simplest forms of a trust but can still… read more…
- Asset Protection If a Spouse Goes into a Nursing Home
Many people plan carefully for their financial needs in retirement, but often overlook how a disability could impact their situation. Unfortunately, disability is one of the leading reasons individuals require nursing home care. Understanding Medicaid laws and exploring asset protection strategies can help you learn how to protect assets if a spouse goes into a… read more…
- What Is a Purpose Trust?
Establishing a trust as part of an estate plan is something you might consider for passing on wealth. While most trusts are created with one or more beneficiaries in mind, purposes trusts work differently. A purpose trust is what it… read more…
- 6 Trusts for High-Net-Worth Estate Planning
If you have a high net worth, one of the most powerful tools available to you is a trust. They can help you pass your wealth to your heirs and may be able to shield your money from creditors. However, there are many types of trusts available. Selecting the right trust(s) will help ensure your… read more…
- What Is a Spousal Lifetime Access Trust?
An estate plan is designed to make sure your family is taken care of after you are gone — and to see that your money and property is dispersed as you want it to be. There are a number of tools available to build an effective estate plan, including wills and various types of trust.… read more…
- Joint Revocable Trust: Estate Planning
Establishing a joint revocable trust can be an ideal estate planning tool for the benefit of your children, your grandchildren and beyond. Married couples have the possibility of establishing a joint trust instead of simply establishing one in each of their names. Let’s compare the advantages and disadvantages for your needs. A financial advisor can help you create… read more…
- Can a Trustee Withdraw Money From a Trust Account?
Trusts can be a useful tool for estate planning when you want to leave specific instructions about how your assets should be managed during your lifetime and beyond. Part of creating a trust means naming a trustee who’s responsible for overseeing… read more…
- How Does a Beneficiary Get Money From a Trust?
If you’ve just inherited a windfall from a deceased relative’s trust, you’re likely wondering, “How does a beneficiary get money from a trust?” When your deceased relative created the trust, they set distribution guidelines for the time of distributions or… read more…
- How to Create a Trust for a Child
When people hear that a child has a trust fund, they often assume that the child is incredibly rich. That isn’t always the case. There are many reasons why parents and guardians would want to create a trust fund, even… read more…
- Do Trust Funds Gain Interest?
When considering long-term wealth management strategies, many people wonder: do trust funds gain interest? While the answer is yes, it’s important to know how trust funds work and how they accumulate interest. Trust funds aren’t simply static accounts holding money but rather, sophisticated financial vehicles that can generate interest, dividends and capital appreciation, depending on… read more…
- Understanding How Discretionary Trusts Work
A discretionary trust is a type of trust that can be established on behalf of one or more beneficiaries. The trustee who oversees the trust can use their discretion in determining when and how trust assets should be distributed to beneficiaries, hence the name. There are different reasons why you might consider establishing a discretionary… read more…
- Types of Charitable Trusts for Financial Planning
Charitable lead trusts (CLTs) and charitable remainder trusts (CRTs) are two types of charitable trusts that could benefit your financial plans for your estate. They provide tax-advantaged income to you and your beneficiaries during or at the end of the term of the trusts along with allowing you to make donations to your favorite charities.… read more…