Trust Financial Planning

Trusts are comprised of three parties: the trustor, the trustee, and the beneficiary. In simple terms, it is a process in which the trustor gives the trustee the ability to manage their assets for the beneficiary. Trusts have numerous exciting benefits, including complete privacy and the avoidance of probate. Legacy Financial Partners is here to make the entire process as easy as possible, providing complete assistance with setting up any type of trust.

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Dynasty Trust

Dynasty trusts are irrevocable and serve the purpose of passing assets from generation to generation. Typically, the children of the trustor are the immediate beneficiaries of a dynasty trust, followed by grandchildren and great-grandchildren. The main benefit is that the trust will not incur any transfer taxes.

Medicaid Trust

A Medicaid trust is an irrevocable trust that is used to prevent the trustor’s assets from being used for financing their nursing care costs. This type of trust must be planned out well ahead of time as the assets must be transferred a whole five years before the trustor requires long-term care.

Special Needs Trust

Special needs trusts are perfect for those interested in helping someone with a mental or physical disability. To protect them from losing out on benefits such as Medicare, supplemental security income, or social security, they can receive extra financial support through the special needs trust.

Asset Protection Trust

If the goal is to keep creditors away from a trust, an asset protection trust might be a worthy option. This will also provide protection from lawsuits or other judgments. An asset protection trust can be either domestic or foreign, which is commonly called “offshore.” Domestic APTs are flexible but can currently only be set up in certain states, while foreign APTs provide more protection.

Charitable Trust

Charitable trusts are irrevocable and have some tax benefits since they are meant for charitable purposes. If the trustor is interested in donating all or some of their assets before they die, they can do so by using either a charitable remainder trust or a charitable lead trust. We will be able to work together with the trustor to decide which is best for their situation.

Life Insurance Trust

Irrevocable life insurance trusts are funded with one or multiple life insurance policies. After the trustor dies, the benefits will be deposited into the trust, which is often paid to the beneficiary through incremental payments.

Testamentary Trust

These trusts are used to appoint a trustee, usually in cases when the beneficiaries are children or disabled. The trustee will then be responsible for distributing assets based on the trustor’s last will and testament. An individual can have more than one testamentary trust in their will.

Need Assistance with Trust Financial Planning?

If you are unsure which trust is best for your situation, or if you need assistance with creating one, Legacy Financial Partners is happy to advise in the process. We want to help you leave behind a lasting legacy. Please contact us today to schedule a meeting.

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