Revocable Living Trusts
A revocable or living trust is a trust that you can change or cancel during your lifetime. You control a revocable trust and the trust’s earnings are consolidated into your income tax returns. You may continue to manage the assets, or your financial advisor will handle management of your assets under your supervision, and upon your disability. A revocable trust can also be used to transfer assets at death, similar to a will, yet without the formal, court-supervised process of probate, where it opens your estate to public scrutiny. Once you pass away, your wishes are final, and thus the trust becomes irrevocable.
Charitable Remainder Trusts
A charitable remainder trust is an irrevocable trust with both income and remainder interests. Income is paid to designated beneficiaries for a term or lifetime. The remainder interest is paid to qualified organizations as specified in the trust document when the trust terminates.
Charitable Lead Trusts
In a charitable lead trust, the trust pays a fixed percentage of assets to a qualified charity for either a set number of years or for the life or lives of the individuals. When the amount of the trust has ended, the remaining assets are distributed to the donor or heirs as noted in the terms of the trust.
Special Needs Trusts
Special needs trusts are often established by the parents or relatives of a disabled child, with funds to be used to pay for supplemental or living expenses of the disabled person not paid by other sources. Special needs trusts can also be set up with the disabled person’s own funds, again to provide for supplemental medical or living expenses.
An irrevocable trust is a trust that cannot be changed or cancelled at any time. This trust is a separate legal entity and its own taxpayer. The terms of many irrevocable trusts, however, allow tremendous flexibility. While many irrevocable trusts come into being at death, irrevocable trusts set up before death are often used to hold life insurance policies, gifts of assets to be available to beneficiaries at a future time, or funds for future charitable contributions. To achieve beneficial tax results, many irrevocable trusts are written to follow patterns based on the rules in the Internal Revenue Code. The structure most suited to your needs can best be determined with the help of financial, legal and tax advisors who specialize in this field.
Agency relationships can be set up for any of the above account where the fiduciary or fiduciaries designate an agent to undertake one or more of the responsibilities for the account.
A private foundation is a charitable organization created and funded by a donor as a trust or a non-profit organization, which is designed to achieve one or more specific charitable functions.
Guardianships are established to protect and handle the assets of minors.
Family Office Group Relationships
The Private Trust Company can provide comprehensive trustee and financial services for high net worth families.
Rabbi trusts are set up by corporations to support non-qualified, deferred compensation plans.
Irrevocable Life Insurance Trusts
An irrevocable life insurance trust (ILIT) is typically used to shelter an insurance death benefit from estate taxes and may provide liquidity to pay estate taxes and settlement costs. A trust is created, and then the trust purchases and owns a life insurance policy. Upon death, the insurance proceeds are paid out in accordance with the terms of the trust.