Do you want your wealth to be passed on to the next generation of your family? A Family Security Trust is a means of preserving and enhancing family wealth as it accumulates over the years.
One of the 'secret weapons' of the wealthy is the use of family trust accounts to benefit family members. The most powerful are irrevocable trusts in which the 'grantor' (founder) is neither the 'trustee' (administrator) nor the beneficiary. As a result, such family trust accounts are deemed to be 'outside' the estate; thus, neither the ownership of assets held within the trust nor the income earned by the trust is subject to attribution to the trust's grantor.
A family trust account can be one of the most flexible ways to hold property. However, there are trade-offs and you can use a combination of both revocable and irrevocable trusts along with various funding strategies to maximize a tax-advantaged, judgment-proof and divorce-proof outcome. In many cases certain kinds of trusts (especially when combined with other forms of asset protection as well as insurance and retirement planning) can be very effective. One of those tools is the use of an irrevocable Family Security Trust Account.
Things to Keep in Mind with a Family Security Trust:
- Normally, family members such as your children, siblings, or nephews and nieces are the beneficiaries. You select a trusted third party – such as your best friend – to serve as a trustee. The trustee is a fiduciary with a duty of loyalty to the trust beneficiaries you have selected.
- The Trust can own different types of property in a manner that is safe from outside interference.
- Gifts from you going into the trust are deemed to be 'outside' your ownership and estate – and thus beyond the reach of lawsuit judgments, divorce decrees or estate taxes because ownership of trust assets are no longer attributable to you.
- 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.
- As long as the trust is established while your legal seas are calm (and there is no dispute just over the horizon) and your gift of assets into the trust is not part of a scheme to defraud legitimate creditors, the trust can provide a safe and flexible way to secure assets.
To learn more about our family trust services, please give NCH a call at 1-800-508-1729.
*Legal Disclaimer – Nevada Corporate Headquarters, Inc. has prepared the content of this website for informational purposes only. It is not legal advice. Our legal services are provided by an in-house independent Nevada law firm.*
