TEP Strategy: March 2013 - Trusts
 

Trusts – An integral part of your estate plan

March 2013
 


Integrating a trust (or multiple trusts) as part of your estate plan may provide significant benefits to you and your family. Typical benefits may include:

  • Tax savings
  • Protection of assets from creditors
  • Minimizing probate
  • Controlling assets and their distribution to various beneficiaries
  • Maintaining government benefits for disabled children
  • Assisting with your cottage succession planning
  • Ensuring privacy on the distribution of your wealth
  • Minimizing U.S. Estate Taxes
  • Facilitating business succession

 

When properly structured, utilizing trusts as the cornerstone of your estate plan may save your estate thousands of dollars in annual tax savings. Whether you have a large family business, a portfolio of investments, the proceeds from the sale of a residence or a significant life insurance policy, a trust may be a tax effective way of passing this inheritance to your beneficiaries.

 

 

In addition to tax savings, properly structured trusts can simplify the distribution of your estate, provide adequately for family members, minimize probate and protect your beneficiaries’ inheritance from creditors, including the effects of a marital breakdown.

 

While there are some common threads to estate planning, a personalized plan should be a reflection of your personal goals, objectives and priorities. Understanding your options and weighing the cost and benefits of all the opportunities is often the most difficult. Once properly implemented, the proper use of trusts can ensure your wishes are met and the distribution of your wealth results in an effective and efficient transition to your beneficiaries.

 

Richardson GMP has developed a series of articles on trusts to help you better understand the opportunities, complexities and types of trusts. Working together with your Richardson GMP Investment Advisor and your external tax, trust, estate and family law professionals, the Richardson GMP Tax & Estate Planning Team can provide support in the development, implementation and integration of your trust planning.

 

When it comes to preparing an effective estate plan, the whole is greater than the sum of the parts. Each piece of the estate plan must be addressed as part of the overall picture to ensure that all components are working effectively together to deliver the best results.

 

 


For complimentary copies of our trust articles contact your Richardson GMP Investment Advisor.