Estate Planning

A trust is a fiduciary relationship whereby a trustee holds assets for the benefit of a beneficiary or beneficiaries subject to the terms and provisions of the trust instrument. Trusts can specify exactly how and when assets pass or how assets may be used for the benefit of the beneficiaries. Trusts can be revocable (i.e., you may generally revoke or amend the trust at any time) or irrevocable (i.e., modification or amendment is limited or prohibited). We help clients establish trusts with various degrees of complexity, from simple revocable trusts designed for probate avoidance to complex irrevocable trusts designed to provide asset protection and/or to minimize taxes (e.g., estate tax).

A revocable trust may offer privacy through probate avoidance with respect to certain assets and how such assets are to be distributed or handled. A revocable trust allows for detailed asset distribution instructions and may be tailored for a client’s specific needs.

A revocable trust can keep the provisions of your estate plan (e.g., the identity of beneficiaries or the amounts they may receive, as well as the timing and circumstances under which they are to receive the assets) private, unlike a will, which is generally a public record after death. The nature and value of assets passing pursuant to a will generally are available to the public via an inventory filed with the applicable probate court.

Both the Durable Financial Power of Attorney and Health Care Power of Attorney are critical documents for comprehensive estate planning. The Durable Financial Power of Attorney enables you to appoint someone to manage your financial affairs if you become unable to do so, ensuring that your financial responsibilities are handled according to your wishes. Similarly, a Health Care Power of Attorney allows you to designate a trusted individual to make medical and other decisions regarding your physical person (not your financial decisions) on your behalf upon your incapacity. Together, these documents may help you avoid the need for a court-appointed guardian and/or conservator to be named in the event of your incapacity.

Our advanced planning services cater to high net worth individuals and families, providing sophisticated strategies tailored to their unique financial situations and goals.  These techniques include:

Grantor Retained Annuity Trusts (GRATs):  GRATs are a powerful tool for transferring appreciating assets to beneficiaries with minimal gift tax implications.  By retaining an annuity interest, the grantor can potentially transfer significant wealth tax-free if the assets outperform the IRS-assumed interest rate.

Irrevocable Life Insurance Trusts (ILITs):  ILITs are used to exclude life insurance proceeds from the taxable estate, providing liquidity to pay estate taxes and other expenses while preserving the estate’s value for beneficiaries.

Dynasty Trusts:  These long-term trusts allow wealth to be preserved and managed across multiple generations, offering protection from estate taxes, creditors, and divorce settlements.

Family Limited Partnerships (FLPs) and Family Limited Liability Companies (FLLCs):  These entities enable the centralized management of family assets, discounting the value of transferred interests for gift and estate tax purposes, and providing creditor protection.

Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs):  CRTs and CLTs provide significant tax benefits while fulfilling philanthropic goals.  CRTs offer income streams to the donor or beneficiaries with the remainder going to charity, whereas CLTs provide current income to charity with the remainder going to non-charitable beneficiaries.

Qualified Personal Residence Trusts (QPRTs):  QPRTs are designed to remove the value of your primary or secondary residence from your estate, reducing estate taxes while allowing you to continue living in the property for a specified period.

Intentionally Defective Grantor Trusts (IDGTs):  IDGTs allow for the sale of appreciating assets to the trust without triggering capital gains taxes, effectively freezing the value of the assets for estate tax purposes while the appreciation occurs outside the estate.

By leveraging these advanced planning techniques, we help clients maximize their wealth transfer opportunities, minimize tax liabilities, and ensure the long-term financial security of their families.