Business Executive/Business Owner–Estate Planning–Part Three

In your quest to build a successful career, the protection of your wealth and the well-being of your loved ones emerge as paramount concerns. Trusts serve as a cornerstone in estate planning, offering a versatile and effective means to safeguard your assets while ensuring they benefit those you care about in the manner you intend.

Among the myriad of trust options, the Discretionary Trust, Irrevocable Life Insurance Trust (ILIT), and Standalone Retirement Trust (SRT) stand out for their ability to offer both protection and flexibility. These trusts can protect your beneficiaries from their own potential financial missteps, creditors, or even from the impacts of a divorce, while also providing tax benefits and maintaining the intended use of the assets.

The Discretionary Trust gives the trustee the authority to decide when and how much of the trust assets to distribute, offering protection against beneficiaries’ creditors and ensuring the assets are used wisely. The ILIT, on the other hand, is specifically designed to own a life insurance policy on your life, providing your beneficiaries with a death benefit that is protected from their creditors and not included in your estate for tax purposes.

For retirement accounts, the SRT is an invaluable tool, allowing these assets to be protected from creditors while still providing for your beneficiaries in a tax-efficient manner. This type of trust is particularly useful given the unique nature of retirement assets and the potential vulnerability to creditors and legal judgments.

Integrating trusts into your estate plan demands careful consideration of your goals, your family’s needs, and your legal framework. With a skilled estate planning attorney, safeguard your wealth and fulfill your loved one’s future needs.

Check out our next blog in this series here

Call The Curran Law Firm to schedule your estate planning appointment at 561.935.9763