legacy trust, also known as a ‘wealth trust’, is an irrevocable trust which
allows you to set aside assets separate and apart from your primary estate.
Since assets placed in a legacy trust are separate and apart from your
primary or main estate, this means that asses placed in such a trust are
exempt from any claims against your estate by creditors, judgements, or
estate or inheritance taxes.
For this reason, legacy trust are an excellent financial vehicle you can
use to remove assets from your primary estate and hold them in a separate
family savings plane for such things as college tuition, possible financial
hardship, or simple asset transfer from one generation to another.
Legacy plans are normally funded through annual gifts and are overseen
by an appointed trustee. The donor cannot serve as the trustee, who is
the person responsible for overseeing the trust and dispersing funds from
the trust as directed by the owner of the trust.
The types of distribution handled by the trustee of a legacy trust are
usually college tuition, income distribution to the donor’s children
or grandchildren, or medical or other financial emergency for which the
donor may need to tap into the assets of the trust.
The donor may also wished to direct various distributions to family members
while alive – once the donor passes away, any distributions from
the trust will be subject to probate.
Legacy trusts are an excellent way to transfer wealth from one generation
of a family to another, while protecting those assets from many of the
issues that may reduce the value of property held in an individual’s
For that reason, it has
long been use as a financial tool for many of America’s most prominent,
wealthy families to guarantee that the wealth they worked so hard to secure will be safe
for future generations of their families.
Contact us if you feel a legacy trust may be a good investment for your family.