Your browser does not support JavaScript

Our Promise To You

We provide a comprehensive view of your financial life and all the factors that go into life planning. What this means to you is help with personal decision making and putting a date on things. We help you manage your finances and investments, while taking into consideration tax planning, professional moves, children, retirement, healthcare and other important priorities. It’s about life planning and gaining more comfort with your long-term financial security.
 

Blog & News

A Few Uncommon Uses of a Trust Fund
Posted By:  Rob Lemmons CFP®, CPA, AIF®, CEPA
Tuesday, March 27, 2018

Trust funds are regarded to as one of the most effective methods of asset planning. Trust funds are generally deposited in an account called the trust which is operated and protected by the concerned institution. Although the basic function of a trust fund is to streamline inheritance distribution, there are a few other important reasons why one must consider obtaining the services of a trust.

1. Reducing Taxes

Some trust funds are created with the purpose of influencing taxes. Trusts are known to reduce and even potentially eliminate taxes in the most advanced situations while most of them can at least delay the taxation process. This feature of a trust fund is very helpful in saving the tax expense after the death of the benefactor.

For example, after the trustor passes away, the tax regulatory authority will determine the size of the entire estate for taxation assessment. But the authority offers a payout for any life insurance policy held by the deceased.

Therefore, in order to reduce the overall range of the estate, many people prefer creating irreversible life insurance trust funds. The trust becomes the possessor of the life insurance policy and its payments, hence the worth of the concerned policy doesn’t get included in the tax calculation post the trustor’s death.

2. Protecting Assets

Trust funds are also used as a method of asset protection. This is the most useful technique for people to safeguard their assets from being seized by creditors. People living in states where such trusts are permitted can create the domestic asset protection trust (DAPT). A DAPT allows the trustor to transfer their individual properties into an irrevocable trust.

This permanent trust is operated by an independent trustee who will be responsible for distributing the trust funds to those nominated as heirs as per the trustor’s directions. The properties which are held in an asset protection trust are also defended against the trustor or beneficiary’s creditors. This means that the creditors will not be allowed to take any property already billed under the trust fund to reclaim any debts owed to them by the benefactor and their family.

3. Incapacitation

A unique feature of a trust is that it can name itself as the trustee and directly look after the trust funds. Trusts are also known as valuable tools to protect a benefactor’s assets in case the latter loses their competence. Incapacitation means that the original trustee might have lost their senses or ability to think and make decisions due to old age or any accident.

This feature also comes into action if the benefactor is in a vegetative state thus preventing them from running the trust funds. This benefit the trustor’s family by removing the need for a court appointed caretaker.

To know more about trusts funds and how trusts are able to benefit a person in numerous ways, contact your nearest team of wealth advisors and estate planning agencies which will help you organize the best trust fund plan.



 
 
Subscribe To Our Blog

Blog Categories

  • In the News
  • Business Owners
  • Charitable Planning
  • Client Experience
  • College Planning
  • Estate Planning
    • 06/01/2020 - What Are Wills and How Do they
    • 05/26/2020 - Sharing Important Health Docum
    • 05/19/2020 - Estate Planning for Your Pets
    • 10/17/2019 - Can't Take It With You
    • 03/27/2018 - A Few Uncommon Uses of a Trust
    • 02/27/2018 - 3 Common Types of Trust Funds
    • 01/31/2018 - The Basics Of A Trust Fund You
    • 01/11/2017 - A Client's Experience With Est
  • Executive Compensation
  • Firm Updates
  • Investments & Market Updates
  • Retirement Planning
  • Security & Privacy
  • Taxes
  • Financial Planning
 

INVESTMENT
MANAGEMENT

Our investment management process is focused on helping you maintain financial stability, preventing mistakes and accomplishing your investment objectives. We don’t just focus on market performance or predictions. We focus on what performance means and how it impacts your long-term goals. It starts with returns, but it is about making life decisions. Working together, you gain a degree of confidence when uncertain times come.

Learn More
 

RETIREMENT AND
TAX PLANNING

We help you determine how long to work and when to retire to continue your lifestyle. We analyze when and how to take money from your portfolio to replace your paycheck, with an eye on tax efficiency, spending, healthcare and social security maximization. We address the primary concern of having your money last for the rest of your life.




Learn More
 

HOLISTIC/COMPREHENSIVE
PLANNING

Our comprehensive planning focuses on real life. It’s putting a date to your goals and steering your life based on analysis, giving you choices and alternatives. You gain the ability to see how reachable your goals are. It starts with getting to know you and the way you want things done to fulfill your needs. We take into consideration your family and all the secondary factors that go into a comprehensive financial plan.


Learn More

WE'VE BEEN LISTENING
FOR OVER 30 YEARS

Total Wealth Planning’s team of Certified Financial Planners® are here to listen to you and your questions. We never want you to feel rushed. The real benefit is having a road map to help ensure the key elements of your financial life are in order.


Total Wealth Planning Associations
WE ARE PROUDLY ASSOCIATED WITH

CONTACT INFO


 

WHAT'S NEW AT TWP


       
CORPORATE EXECUTIVES

FAMILIES

PRE-RETIREES / RETIREES

BUSINESS OWNERS

DISCLOSURES
ECONOMIC OUTLOOK

BLOG & NEWS

VIDEO LIBRARY

FORM CRS
   
4665 Cornell Rd. Suite 160, Cincinnati, OH 45241 4665 Cornell Rd. Suite 160, Cincinnati, OH 45241
513-984-6696 513-984-6696
info@twpteam.com info@twpteam.com
Growth triggers fee reductions in DFA funds
Tuesday, November 10, 2020


SEE MORE >

Follow us on Google+
Blog & News
Follow us on Twitter
Find us on Facebook
DISCLOSURES | COPYRIGHT © 2020. TOTAL WEALTH PLANNING. ALL RIGHTS RESERVED.
GET STARTED
READY TO
GET STARTED?