Trusts & Charitable Giving
We want you to be informed, and to have a thorough understanding of “best practices” for investing and wealth management. This portion of our website is set up to help educate you about trusts and charities.
Additionally, we are always available to help you strategize the fastest way to grow your nest egg!
Use these links to learn more. You can also download a printable version of each by using the links at the bottom right of each section.
____________________________________________
Whether you want to manage your own assets, control how your assets are distributed after your death, or plan for incapacity, trusts can help you accomplish your estate planning goals.
Their power is in their versatility. Many types of trusts exist, each designed for a specific purpose.
Although trust law is complex and establishing a trust requires the services of an experienced attorney, mastering the basics relatively easy.
Trust Basics (print version)
____________________________________________
Charitable giving can play an important role in many estate plans. Philanthropy can provide great personal satisfaction, give you a current income tax deduction, let you avoid capital gains tax, and reduce the amount of taxes your estate may owe when you pass away.
(Be sure to read “Charitable Lead Trust” afterwards)
Charitible Giving (print version)
____________________________________________
A charitable Lead Trust can be a great way to leverage your generosity, providing tax savings for your favorite charity and your own family.
Charitable Lead Trust (print version)
____________________________________________
Grantor Retained Aunnuity Trusts
A grantor retained annuity trust (GRAT) is an irrevocable trust into which you make a one-time transfer of property, and from which you receive a fixed amount annually for a specified number of years (the annuity period).
At the end of the annuity period, the payments to you stop, and any property remaining in the trust passes to the persons you’ve named in the trust document as the remainder beneficiaries (e.g., your children), or the property can remain in trust for their benefit.
Grantor Retained Annuity Trust (GRAT)(print version)
____________________________________________
Irrevocable Life Insurance Trust (ILIT)
We buy life insurance for a variety of reasons, but most importantly so that our loved ones are provided for after we pass. But, did you know that as much as 45% of life insurance proceeds can be taken in the form of federal estate tax?
An ILIT (pronounced eye-lit) can insure that your family and loved ones receive 100% of your insurance payout, undiminished by estate taxes.
Irrevocable Life Insurance Trust (ILIT) (print version)
____________________________________________
Qualified Personal Residence Trust (QPRT)
A qualified personal residence trust (QPRT) offers an excellent opportunity for homeowners with taxable estates (estates larger than $3.5 million in 2009) to minimize federal gift tax and avoid federal estate tax.