The Wealth Counselor LLC

Wealth-Preserving Strategies for Generations to Come

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Trusts are a hot topic...

More people are becoming familiar with trusts. There are advantages with trusts, including one of the hottest topics in estate planning today — the use of trusts to keep assets in the family for generations, passing them by blood instead of by marriage.

Pillar 1: Trusts and Estates Planning 

Did you know that a revocable living trust can be a substitute for a will in many cases? But unlike a will, the trust does not need to be probated at death, which may avoid a potentially costly and/or lengthy court proceeding. But did you also know that since the trust takes effect while you’re living, it allows you to state who your successor or back-up trustee will be in the event of incapacity? That is news to many.

 Not sure about which trust is best? Contact The Wealth Counselor LLC  today for more details.

Contact The Wealth Counselor

The Wealth Counselor LLC
1325 G Street, NW, Suite 500
Washington, DC 20005

The Heritage or Dynasty Trust is emerging with divorce rates hovering around 50%. It solves a newer set of planning problems where middle-class people are leaving gifts of hundreds of thousands of dollars to their children. With larger estates now and to protect assets and keep them in the family, many retirees are setting up trusts for their children that:

  • protect the assets in the event of a divorce;
  • may provide creditor protection, if desired; and
  • while giving the son or daughter lifetime access to income and principal, pass whatever's left by blood (usually to the client's grandchildren) instead of by marriage.

Example: Heritage or Dynasty Trust

Someone dies and (or after the second spouse dies, if they’re married) they leave an estate of $500,000 in equal shares to their two children, Bobby and Mary. Now, when Bobby or Mary dies, who inherits the $250,000 from them? The client’s son-in-law or daughter-in-law first. Can they then get remarried and share the client’s $250,000 with a complete stranger? Sure. And with people living a lot longer, this is occurring more often.