Personal Planning Ideas

What are your personal financial goals? Would you like to have someone professionally manage some of your assets and investments? Would you like to relieve your family of future money management worries? Would you like to avoid or reduce gift and estate taxes? Would you like to make a significant gift to benefit future generations, and, at the same time, increase your income and save taxes?

All the above objectives can be accomplished with a unique arrangement called a trust. What is a trust? A trust is simply an alternative way of owning and managing assets. Most of us own real estate, investments and other property in our own names and personally attend to any management or investment chores. With a trust, you transfer legal title of assets to a trustee, who manages the assets for the benefit of one or more beneficiaries you name (probably including yourself). When the trust ends, the assets pass to people or organizations you choose. Through a trust you can influence events far past your own lifetime, save taxes and accomplish many important goals. Let’s look at some specific situations in which a trust can help.

• Rita has cared for her disabled son all his life but knows that she will not always be there to help him. A trust and guardianship arrangement will ease her concerns for the future.

• During their 45 years of marriage, Marie and Charles have worked hard and saved carefully. Their home, investments and life insurance are now worth more than $3.8 million. They want to ensure that their children, not the tax collector, will receive the benefit of their lifetime of effort. A trust in their wills can avoid all federal estate taxes.

• Patrick wants to make an important contribution and receive an income tax deduction, but does not want to lose any of his investment income. Solution? A charitable remainder trust that pays him income for life and supports our mission after his death.

Our office has more information on the advantages of trusts that we would be pleased to share with you. There is absolutely no obligation.

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