Trusts are a common estate-planning tool used for tax planning, preserving legacies, transferring wealth, and caring for loved ones’ current and future needs. Who you select as trustee defines your trust’s ability to achieve these goals.
Partner Susan Hartley Moss has more than 30 years of experience helping clients successfully establish trusts as part of their estate plans. Her video series outlines the key factors to consider before creating a trust and choosing a trustee who can balance their fiduciary responsibilities with your unique circumstances.
The motivation for seeking professional advice often centers around a family’s desire to:
Over the next 30 years, $16 trillion of wealth is expected to transfer to the next generation. These individuals want more control over their trust investments while maintaining the core trust structure. Their needs, coupled with the current estate-tax exemptions, have created an uptick in demand for modern and flexible trusts.
Putting the proper estate planning structures in place involves asking questions that go beyond the potential tax implications.
On the surface, it may appear your estate plan has accomplished your objectives, such as successfully transferring your business to the next generation. However, a closer examination may reveal the plan failed to keep the family together and focused on the core mission. Work with an advisor who specializes in both estate and legacy planning to help you avoid these issues.
How do you create a succession plan that keeps family harmony, perpetuates your business and successfully transfers wealth to the next generation? It starts with these questions.
Directed trusts are the most popular modern trusts because they separate administrative, investment and distribution responsibilities. A directed trustee oversees the administration of the trust, but the investment committee handles all investment decisions. Additionally, the distribution committee manages income and principal distributions to beneficiaries. This approach ensures no one person has control over the entire trust.
Modern directed trusts offer families many benefits, including:
Family members are usually the first ones to pop into people’s heads when selecting a trustee. However, interests are better served by naming an independent trustee who can mitigate family conflicts. Here are five considerations for selecting an independent trustee:
Build a trust that achieves your goals and provides for your family’s future.