Family Security Trust

Having a Family Security Trust preserves and enhances family wealth. This will ensure that your wealth will be passed on to the next generation.

Referred to as one of the “secret weapons” of the wealthy, a Family Security Trust is a means of preserving and enhancing family wealth as it accumulates over the years. The most powerful are Irrevocable Trusts in which the grantor is neither the trustee nor the beneficiary.

Considered as being “outside” your estate, gifts going into the trust and estate are beyond the reach of lawsuit judgments, divorce decrees, or estate taxes because ownership of trust assets is no longer attributable to you.

Flexible as well, you can use a combination of Revocable and Irrevocable Trusts and various funding strategies to maximize a tax-advantaged, judgment-proof, divorce-proof outcome.

In many cases, certain kinds of Trusts (especially when combined with other forms of asset protection like insurance and retirement planning) can be extremely effective.

Our Approach

At NCH, we understand the importance of preserving and enhancing family wealth for future generations. We offer a comprehensive approach to Family Security Trusts that considers various factors to create a customized solution for each client.

We utilize a combination of Revocable and Irrevocable Trusts, along with strategic financial strategies, to maximize tax advantages and create a judgment-proof and divorce-proof outcome. By structuring the trust so that the grantor is neither the trustee nor the beneficiary, we ensure that the assets are considered "outside" the estate, offering protection from lawsuit judgments, divorce decrees, and estate taxes.

Frequently Asked Questions

What’s the difference between a Revocable Trust and an Irrevocable Trust?
A Revocable Trust is a trust that can be modified or revoked by the grantor during their lifetime. An Irrevocable Trust cannot be modified or revoked. The grantor relinquishes control over the trust assets, which can provide tax advantages and asset protection benefits.

How does a Family Security Trust protect assets from lawsuit judgments and divorce decrees?
When assets are transferred into a properly structured Family Security Trust, they are considered "outside" the estate. This means they are no longer attributable to you, the grantor, and are held by the trust. As a result, these assets are shielded from lawsuit judgments and divorce decrees, as they are no longer legally owned by you personally.

Can a Family Security Trust help reduce estate taxes?
Yes, by transferring assets into an Irrevocable Trust, you can reduce the value of your taxable estate. The trust owns the assets, not you. This means that they may not be subject to estate taxes upon your death, depending on the applicable tax laws and exemptions.

Are there any downsides or limitations to a Family Security Trust?
Establishing a Family Security Trust requires careful consideration and planning. It is important to work with experienced professionals to ensure compliance with legal and state tax requirements. Once assets are placed into an Irrevocable Trust, you cannot retrieve them or change the terms of the trust. Consult with qualified advisors before proceeding.

How can NCH assist with setting up a Family Security Trust?
NCH proudly offers a personalized and comprehensive approach to Family Security Trusts, providing personalized solutions tailored to each client's specific goals and circumstances. Our experts possess both the knowledge and experience to guide you through the process, from structuring the trust to implementing funding strategies.

Things to Keep in Mind with a Family Security Trust:

  • In most cases, your children, siblings, nieces, and nephews are the beneficiaries, and you must select a trusted third party to serve as a trustee. This person acts as a fiduciary with a duty of loyalty to the Trust beneficiaries you’ve selected.
  • The Trust can own several types of property in a manner that is safe from outside interference.
  • The Trust can serve as a majority Limited Partner in a Family Limited Partnership. It does so by investing assets into the Family Limited Partnership in exchange for a majority Limited Partner interest.
  • If established without legal disputes and your gift of assets is not part of a scheme to defraud legitimate creditors, the trust can offer a safe and flexible way to secure assets.

Find Out More

If you have any questions about Family Security Trusts, we at NCH can assist you in setting one up; we recommend contacting our team directly. Our experts can provide detailed information, answer any additional questions, and guide you through establishing a trust that aligns with your specific needs and goals.

Call 1-800-508-1729 to preserve and enhance your family's wealth for future generations!

*Legal Disclaimer – NCH has prepared the content of this website for informational purposes only. It is not legal advice. An in-house independent Nevada law firm provides our legal services.*

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