In Trusts We Trust - Adviser Investments

In Trusts We Trust

In Trusts We Trust
We rate trusts highly as a tool to pass wealth along to the next generation in a tax-friendly manner. In fact, a trust-based estate plan is often more effective than a will-based estate plan, especially for high-net-worth individuals and families.

Contact us so we can talk about the different types of trusts and even connect you with an estate attorney.

Here are some advantages:

  1. Faster resolution. Assets placed in a trust are generally safe from creditors and can be disposed of (i.e., sold) by the trustee in short order. In contrast, under probate it can take months or years for debts to be paid and heirs to be notified before beneficiaries receive assets they’ve inherited.
  2. Greater control. Trusts make it easier to ensure the money you pass on is earmarked as you wish. With a will, named individual or institutional beneficiaries can generally spend bequeathed funds how they please.
  3. Greater flexibility. Many types of trusts allow the grantor to access the assets during their lifetime. This makes it easier to adjust your estate plan as needed.
  4. Less complexity. If you have real estate or other assets in multiple states, or if your heirs live in different locations, a revocable trust may help you reduce complexity by avoiding the need to establish a probate case in each separate jurisdiction.

There are numerous types of trusts. One example? An irrevocable life insurance trust (ILIT). The ILIT owns a life insurance policy on the grantor’s life. When the grantor passes, the proceeds fund the trust and are distributed to beneficiaries. Life insurance proceeds not held in an ILIT are taxed as part of the insured’s estate. With an ILIT, those proceeds are excluded from the insured’s estate, reducing the estate tax burden.

Any questions? We’re here to help, and would be happy to provide a customized solution.

This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.

Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged.

Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional or licensed insurance professional regarding your specific legal or tax situation, or insurance needs.

Companies mentioned in this article are not necessarily held in client portfolios and our references to them should not be viewed as a recommendation to buy, sell or hold any of them.

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