A sound plan must be in place to protect your assets for future generations in today’s unpredictable and ever-changing world. Whether you’re just starting out in life or nearing retirement age, this article will equip you with all the knowledge you need about legacy trust planning so that you can make informed decisions about safeguarding your hard-earned wealth now – and beyond, relieving your stress and worry!
What is Legacy Trust?
Legacy trusts are a form of irrevocable trust, which means that once it is established, the terms cannot be altered. The grantor, the person who creates the trust, appoints trustees to oversee its assets and beneficiaries to receive payments from it. Depending on how your legacy trust is set up, you could be allowed to decide how the money is spent or you might grant the trustees freedom to manage the money for the beneficiaries. The beneficiary may receive payments from the trust when they turn a certain age or reach a milestone like graduating from college, among other conditions.
What are the benefits of having a legacy trust?
Flexible
The main advantage of legacy trusts over other estate planning tools is that they offer more control and flexibility as legacy trusts allow the grantor to set out specific instructions as to how the trust assets should be managed and distributed. These instructions are created in accordance with the needs of the trust grantor and can include conditions such as when assets are to be distributed, how assets are to be managed and invested, and who will receive distributions.
Irrevocable
Another benefit is that since the trust is irrevocable, it cannot be amended after it is established. This provides comfort, knowing that your legacy will be carried out exactly as you intended, no matter what happens.
Multiple beneficiaries
Additionally, legacy trusts can help reduce estate taxes by allowing you to name multiple beneficiaries who will receive payments over time instead of a single lump sum upon death. This legacy trust planning strategy prevents large chunks of your assets from being taxed at once and instead allows the estate to be distributed gradually. Naming multiple beneficiaries can also help ensure that your assets are divided equally among the people you wish to benefit from them.
How to get started
When setting up a legacy trust, keep in mind to consider all of the benefits and drawbacks carefully. You should take into account tax regulations, your personal goals, and any other factors that might be relevant to your estate plan. Additionally, you should name trusted individuals as trustees to ensure they are able to manage the assets responsibly.
Talk to a financial advisor
Planning for the future can be a complex and overwhelming task. That’s why it’s important to work with professionals who have expertise in legacy trust planning. Our team of experienced advisors at Robert Emmer with Silversage can help guide you through the process and provide the support you need to make informed decisions about your legacy trust.
If you’d like to learn more about legacy trust planning or any other estate planning topics, get in touch with our financial advisor today. We take the time to understand your specific circumstances and goals. Our team will work closely with you to develop a customized plan that reflects your wishes and safeguards your assets for future generations. Our goal is to provide you with financial confidence to relieve your stress and worry. Together, we can create a legacy trust that safeguards your assets for generations to come.
Contact us to know more!