• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

Why Should I Have a Family Wealth Trust?

July 3, 2014 by Deb Sexton Leave a Comment

Generally speaking, trusts are valuable estate planning tools.  A Family Wealth Trust can be very valuable because it can be used not only for asset protection, but also for preserving a family’s legacy.  With a Family Wealth Trust, you can regulate a younger heir’s access to assets and provide long-term supervision and management of investments. The trustee of a Family Wealth Trust is responsible for investing assets and making sound decisions when distributing your estate to your beneficiaries.

The primary goal of asset protection is to shelter your accumulated wealth from unnecessary risks. A Family Wealth Trust can be the most effective and flexible method for doing that.  Regardless of the value of your estate, asset protection should always be a part of your estate plan, in order to ensure your family wealth will be passed on in the way you intend.

What Is a Trust?

A trust is merely an agreement regarding to whom the property will be transferred.  The agreement is between three parties: the grantor, the trustee and the beneficiary.  The “grantor” is the person who owns the assets in the trust.  The “trustee” is the person to whom the legal title of the assets will actually pass.  The “beneficiary” is the person who will eventually receive the assets after certain specified conditions have been met.  Usually, a trustee is a trusted friend or relative of the grantor.  A trustee can also be a professional, such as an accountant or an attorney, or even an organization.

How do Family Wealth Trusts provide asset protection?

Family Wealth Trusts are normally irrevocable.  This means that the terms of the trust cannot be modified once the trust has been established.  When the trust is created, the assets that will be placed in the trust are permanently removed from the grantor’s estate.  Therefore, when the grantor passes away, the assets in the Family Wealth Trust will not be considered part of the grantor’s estate and will not be subject to estate taxes.  This is a great benefit when it comes to protecting family wealth.

What is a Generation-Skipping Trust?

Another option to consider in family wealth planning is the Generation-Skipping Trust.  If you want to transfer your property to a grandchild, instead of your son or daughter, that property transfer would be subject to the “generation skipping tax.”  This particular tax is assessed on property as it is passed on to a generation that is two or more levels below the generation actually transferring the property.

A Generation-Skipping Trust, also known as a “dynasty trust,” is designed specifically to avoid, or at the very least minimize, estate taxes on transfers to subsequent generations.  This can be accomplished by holding the assets in the trust and distributing the funds in a pre-defined way to each passing generation.  As a result, the entire amount of the trust can effectively be protected from estate taxes with each subsequent generation.

If you have questions regarding a family wealth trusts, or any other estate planning needs, please contact Wilcox Attorneys, PA online, or by calling us at (479) 443-0062.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.