A Long-Term Trust is for the benefit of children, grandchildren, nieces, nephews
and their descendents with distributions at their passing to future generations
on a tax free basis. Not only is it possible to have the trust principal and
accumulated income, which hopefully grows over time at a rate at least equal
to inflation, pass transfer-tax free while offering significant creditor protection
as well as distribution flexibility, money management and investment advantages.
Reasons to Create a Long-Term Trust
1. Save federal transfer taxes
Reasons to Avoid a Long-Term Trust
2. Protect assets from beneficiaries' creditors
3. Protect assets in divorce proceedings involving a beneficiary
4. Prevent assets, such as stock in a closely held corporation, from being
encoumbered or sold
5. Encourage the beneficiary to act in desired ways (by providing funds only
if the beneficiary earns a certain amount of income, gets married, has children
6. Discourage a beneficiary from acting in undesireable ways (not providing
funds if addicted to drugs or alcohol, convicted of a crime ...)
7. Protect the beneficiary from improvidence or designing persons
8. Manage assets for a minor or handicapped individual or for someone who has
become disabled due to illness or old age
9. Provide investment management
10. Consolidate voting interests in closely held entities without having to
be concerned with voting trust restrictions
1. Insufficient funds to create a long-term
trust and/or is not the beneficiary of a grandparented
long-term trust for Generation Skipping Trust (GST) purposes
2. Does not obtain estate planning advice and does not otherwise learn about
3. Obtains estate planning advice, but is not informed of these options or
is counseled not to use them
4. Does not care what happens to his or her assets after his or her death and/or
the death of a spouse
5. Believes the children will need to spend their inheritence
6. Wants children to be able to decide what to do with assets regardless of
the tax consequences
7. Does not want to tie up assets in the trust
8. Finds the subject to be too complex
9. Does not choose these options from the array of available legal and financial
10. Does not devote sufficient time to these options because of demands on
time by occupational, recreational, religious or other matters
11. Finds the documentation too long and too complex
12. Believes that the cost of development and implementation of the trust are
Shoreline's Competitive Edge
Whatever your estate planning need, Shoreline Wealth and Investment Management
can assist you in obtaining the best estate and legal advice available.
For more information:
If you'd like more information about how diversified investment advisors can help you achieve your financial objectives through personalized wealth or retirement and risk management strategies, please contact us. We welcome the opportunity to discuss your unique needs and how we may best meet them.
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Charles M. Bloom, Registered Principal offers securities
and advisory services through Centaurus Financial, Inc. - Member FINRA and SIPC - 775 Avenida Pequena, CA, 93111 (mailing address: 3905 State Street Suite 7173, Santa Barbara, CA, 93105) - CA Life Insurance License No. 0A52786 - Centaurus Financial, Inc. and Shoreline Wealth & Investment Management are not affiliated companies.
The information contained in this web site is neither an offer nor solicitation of any security or service.