Advising Clients since 1980
Long-Term Trusts
A Long-Term Trust is for the benefit of children, grandchildren, nieces, nephews and their descendants 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
Save federal transfer taxes
Protect assets from beneficiaries' creditors
Protect assets in divorce proceedings involving a beneficiary
Prevent assets, such as stock in a closely held corporation, from being encumbered or sold
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 ...)
Discourage a beneficiary from acting in undesirable ways (not providing funds if addicted to drugs or alcohol, convicted of a crime ...)
Protect the beneficiary from improvidence or designing persons
Manage assets for a minor or handicapped individual or for someone who has become disabled due to illness or old age
Provide investment management
Consolidate voting interests in closely held entities without having to be concerned with voting trust restrictions
Reasons to Create a Long-Term Trust
Insufficient funds to create a long-term trust and/or is not the beneficiary of a grand-parented long-term trust for Generation Skipping Trust (GST) purposes
Does not obtain estate planning advice and does not otherwise learn about long-term trusts
Obtains estate planning advice, but is not informed of these options or is counseled not to use them
Does not care what happens to his or her assets after his or her death and/or the death of a spouse
Believes the children will need to spend their inheritance
Wants children to be able to decide what to do with assets regardless of the tax consequences
Does not want to tie up assets in the trust
Finds the subject to be too complex
Does not choose these options from the array of available legal and financial choices
Does not devote sufficient time to these options because of demands on time by occupational, recreational, religious or other matters
Finds the documentation too long and too complex
Believes that the cost of development and implementation of the trust are excessive
Shoreline’s Competitive Edge
We are a network of independent professionals with over 150 years of combined experience in wealth management and advice. Members of this network can be used individually or collectively for a single program or a series of seminars or workshops for your company or organization.
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.
This page is updated regularly so check in from time-to-time to see new articles and updates. You can click on any underlined words on each page to view a specific link or in the left margin of each page to explore a specific wealth management topic.
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.
All photos courtesy of Shoreline Summit Photography