Common Trusts.

Uncommon Benefits.

Check out the benefits that come with our most common trusts.

Type of trust or account

BeneficiaryTax benefits?Other Benefits
Revocable living trustGrantor, possibly grantor's spouseNoneProfessional asset management, continuous financial protection upon incapacity.  Avoids probate in many states.
Investment management accountGrantor, possibly spouse as wellNoneEasy to set up, gain perspective of investment professionals.
Marital deduction trustSurviving spouseFull estate tax deferral in most casesSpouse receives all trust income at least annually, may direct ultimate distribution of trust assets.
Qualified domestic trustSurviving spouse who is not a U.S. citizenFull estate tax deferralSpouse must receive all trust income.
Qualified terminable interestSurviving spouse and childrenFull estate tax deferralEspecially appropriate for “blended families.”  Children’s interests normally can’t be changed by spouse.
Bypass trustAnyone, but usually family membersNo federal estate tax, possible for decadesSurviving spouse may also be beneficiary.
Spendthrift trustUsually children including adult childrenNoneTrust assets are protected from the beneficiary’s creditors.
Special needs trustDisabled individualNoneMay provide for enhanced quality of life while permitting continued government benefits.
Grantor retained income trust (annuity or unitrust interest)Grantor and heirsIncome and estateGrantor’s retained interest reduces gift tax exposure.  Assets may be removed from estate taxation.
Charitable remainder trustGrantor and/or family members, and a charityIncome gift and estate tax deductionsIncome Interest may be a percentage of the trust’s value or a fixed dollar amount.

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