Succession Topics – Do You Need a Trust Fund?

Succession Topics
StateTrust Life and Annuities, along with the participation of specialized experts, designs the most ideal structure (creating a trust, a personal assets company or a private foundation) seeking to bring the financial goals of its customers into harmony with the taxation requirements applicable in each case, based on their country of origin.
Do You Need a Trust Fund?
There are various personal reasons to create a trust fund. Some of them are:
  • Asset Management: Trust funds are responsible for the administration, control and final distribution of capital and/or benefits to the designated beneficiaries. This becomes especially important when beneficiaries are minors, senior citizens, or persons who are physically or mentally incapacitated.
  • Protection: The ultimate goals of estate planning are to protect and increase assets. Trust funds provide excellent protection to deal with investment processes: asset safe-keeping, taxes, litigation, debtors and succession proceedings.
  • Privacy: Trust funds are contracts between two private parties, and are not subject to public scrutiny or public release of records.
  • Simplicity: Trust funds help customers simplify and organize their personal and family finances, such as tax declarations, bill payments, investment management and final asset transfers to designated beneficiaries.
  • Flexibility: Trust funds are more flexible than direct asset donations, guardianship or payment warrants; as they protect those who are not able to fend for themselves.
  • Inheritance Tax Reduction: Trust funds may partially or completely eliminate the taxes associated with inheritance. They can also establish clear proprietary rights for estate assets, such as real estate properties, life insurance, stock purchase options, and dissolution of corporations, among others.