W E A LT H M A N A G E M E N T
ESTATE PLANNING
An Issue of Trust
You’ve spent a lifetime building a business and safeguarding your assets, but how can you be certain your
legacy will be secure after you’re gone? Discover why creating a trust could be your smartest, and safest,
estate planning strategy.
While living wills are the mainstay of estate planning, trusts sometimes offer more control and better assurance that your assets are
protected well into the future. By designating certain monies to individuals or entities under a predetermined set of circumstances,
you and your benefactors gain several key advantages:
AVOIDANCE OF
PROBATE. Unlike
traditional wills, some
trusts are precluded
from the lengthy probate
process, allowing you to
sidestep up to 8% in
additional fees.
TAX RELIEF. Some trust
assets are tax-exempt upon
transference to your heirs and,
in certain cases, tax-sheltered
during your lifetime. Even if
your estate is not large, trusts
can also deliver tax relief for
the beneficiaries of your life
insurance policy.
PROTECTION
FROM CREDITORS.
Whereas wills require
estates to pay creditors
first, trust assets are
often shielded from
creditors and, in some
instances, from bank-
ruptcy and lawsuits.
CONTROL. As creator of the
trust, you specify how bene-
factors use the funds, such as
for education or medical needs,
and you designate the criteria
for disbursement, such as age
or graduation. Additionally, you
choose who will have fiduciary
oversight of the trust.
Consult with professional advisors who will help you take full advantage of all the benefits trusts provide.
CHOOSING THE RIGHT TRUST
Whether insuring the medical needs of a loved one or supporting a beloved cause,
trusts generally fall under one of these categories:
TESTAMENTARY: A testamentary trust is defined in your will and funded by your
estate after your death. Although subject to probate, it is sometimes the best
choice to fund care for a disabled child or reduce estate taxes for a spouse.
This article provides general information
related to trusts and is not intended to
be a substitute for specific individualized
legal or tax advice. Sterling National
Bank and Sterling Wealth Services do not
provide legal or tax advice, including trust
services, and we suggest that you consult
with a qualified legal or tax advisor
concerning your specific situation.
Securities and advisory services offered
through LPL Financial, a registered
investment advisor, Member FINRA/SIPC.
Insurance products offered through LPL
Financial or its licensed affiliates. Sterling
National Bank and Sterling Wealth Services
are not registered brokers/dealers and
are not affiliated with LPL Financial. LPL
Financial Representatives offer access to
Trust Services through The Private Trust
Company N.A., an affiliate of LPL Financial.
Not FDIC
Insured
Not Bank
Guaranteed
Not Insured by Any Federal
Government Agency
May Lose
Value
Not a Bank
Deposit
*As reported by Financial Planning magazine,
June 1996-2018, based on total revenue.
8
INTER VIVOS: Funded during your lifetime and created outside of your will, the
inter vivos trust supports various estate planning strategies depending on its type.
TESTAMENTARY INTER VIVOS
Î Î Irrevocable Î Î Revocable
Î Î Terms of the trust cannot be changed Î Î Terms of the trust can be modified at
any time
Î Î Creator no longer legally owns the
assets Î Î Assets still legally owned by creator of trust
Î Î Assets are untaxable and unavailable
to creditors Î Î Assets included in the taxable estate are
vulnerable to creditors
Î Î A trustee manages the assets Î Î Creator may still manage the assets
Î Î Popular in long-term care planning Î Î Popular in bequeathing to favorite causes
Sterling Wealth Services, through an alliance with LPL Financial, the nation’s
largest independent broker dealer*, offers its clients a wide selection of investment
products and services. Visit connect.snb.com/wealth or call (855) 876-8940
for more information.
Only 36% of Americans have a formal estate plan according
to a 2015 Rocket Lawyer estate-planning survey by Harris Poll.
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