Tyler Phelps, Vice President of Eastern Point Trust Company

Tyler Phelps is the Vice President of Eastern Point Trust Company and Kiss Trust.

Recent Posts

How Parents Reduce The College Tuition & Income Gap Using Kiss Trust

Posted by Tyler Phelps, Vice President of Eastern Point Trust Company on Jun 14, 2016

school2.jpgTuition costs have risen at a yearly rate that is far greater than the growth of the median household income, and they show no signs of slowing down anytime soon. This is not good news for parents, and even worse news for their students. Families must find a way to plan for their high school graduate’s tuition expenses before it is too late. While that sounds like a dooming cliché, it’s true. More high school graduates are attending college than ever before, making it difficult for students to receive sufficient financial aid. Financial aid is awarded based heavily on student need. Without proper planning, parents can hurt their student’s chance of receiving grants, scholarship, and even student loans, which can be detrimental to their child’s college plans. If this seems exaggerated, just take a look at the statistics and visualizations below:

college_costs_vs_income.png

 

Analysis

Between the years of 2004 and 2013 (a 10-year period), tuition costs increased by $809 per year, on average. Between the years of 2004 and 2013 (a 10-year period), the median annual income increased by $1027.89 per year, on average. Seeing that the average median annual income (over the same time period) is $32,712.30 greater than the average yearly tuition cost, the difference in the average increase in the average median annual income and the annual tuition cost (which is only $218.89), seems insignificant. That’s because it is.  In fact, over the 10-year period between 2003-2014, the average annual percentage change of tuition (5.08%) is 236% higher than the average annual percentage change of median income (2.15%)Tweet: The average annual percentage change of tuition is 236% higher than the average annual percentage change of media income #KissTrust. If all of these numbers confuse you, you’re probably not alone. There’s just one thing you should take away from this. It is becoming more imperative to plan for your student’s college career. 

 

How to Reduce This Gap

If you are like most, you have no clue where to start. Planning for your child’s expenses seems daunting and insurmountable. The good news? Just by being here, you are already taking a step in the right direction, and college planning may be easier than you might think. There are several education accounts that parents can utilize, but they are not all same. Each type of account comes with a unique set advantages and disadvantages. While each account is different, and whether or not you have started saving for college expenses or just looking for a better alternative to college savings accounts, there is an option for you. Click here to view several types of college savings tools available to parents. 

Read More

Tags: Irrevocable Trust, College Savings, Education Trust

[Infographic] 11 Reasons Your Family Should Have a Combined Family Trust

Posted by Tyler Phelps, Vice President of Eastern Point Trust Company on Jun 7, 2016

brothers-family-siblings-boys-50692-1.jpg

The notion that “all families should have a family trust” is one that many of the financially savviest advisors agree on. The advantages that family trusts haveare significant, but historically the start-up, maintenance, and administration costs were too hefty for most to undertake. Thus, family trusts have long eluded the vast majority of Americans.

Today, however, it is quite a different story. Families across America are now using Combined Family Trusts for their family, thanks to advancements in financial technologies. The landscape of trust planning has evolved, and as a result, family trusts are now an affordable viable option for families of all shapes and sizes, and the concept that family trusts are “only for the privileged” is no longer true. As a result, many families are missing out on the best way to save, protect, and pass down assets for their loved ones.

Here are 11 reasons why your family should have a Combined Family Trust (if you don’t already):

11 Reasons Your Family Should Have a Combined Family Trust

  1. Provides Asset Protection. Combined Family Trusts are often comprised of an irrevocable trust, or a combination of a revocable trust and an irrevocable trust. Using an irrevocable trust in your family trust offers the most asset protection for your family. Assets held within an irrevocable trust are not considered to be the possession of the grantor or the beneficiaries, so it can protect against creditors and other liabilities (assets in an RLT are not protected from creditors, espouses or bankruptcy).
  2. All Trusts Are Not the Same. Family trusts are flexible in nature and by design. Your family is uniquely diverse, so your trust should be, too. When you create an irrevocable family trust, you can tailor it exactly how you like. This customization ability is maximized with TrustWare™. With over 700,000 different design combinations, you can now afford a family trust that’s right for you – all while allowing you to effortlessly create a trust in less than an hour.
  3. Choose How It’s Used. When you create an irrevocable family trust, you can choose how your assets are used, when they can be received, and even when they can’t be. Award good performance (and deter poor behavior), help your family reach for new heights or support your family when they hit a low… it is your choice.
  4. Investment Growth. No matter if you are busy, relaxed, or somewhere in between, you can direct the family trust’s investments to fit your risk tolerance and investment goals. You have the control to keep your money in cash, money market funds, bonds, stocks, and even ETF’s.
  5. Combining the Benefits. By combining an RLT and an irrevocable trust, you can avoid probate, while protecting your family’s assets for generations. Better yet, you won’t lose the ability to have access and control your assets in the RLT while you’re living your life. It’s like having the key to your family’s treasure chest.
  6. Create a Legacy. Leave behind something more valuable than money can ever be…  a legacy. Become your family’s own Rockefeller, no matter how big or small your estate is. The size of even a modest estate may grow to impressive amounts over time.
  7. Avoid the Probate Headache. Combined Family Trusts can help families completely avoid the expensive and tedious process of Probate. On average, probate takes 6-12 months (with a final will) or 12+ months (without a will) depending on the estate. A recent study found that, on average, 7% of the estate's value will diminish due to the cost of the court probate process. It’s another benefit that you, and your family, will enjoy by having a family trust.
  8. Privacy (It’s No One’s Business). A major problem of only having a will is the lack of privacy that your estate receives after you pass away. All of your private matters and possessions are under public scrutiny during probate. Heirs can contest the terms and make claims against your final will, meaning the wrong things can end up in the wrong hands. The court will determine the rightful heirs and their allocation leaving your family’s financial details open to public scrutiny. A family trust creates a private and protected legal relationship between the Grantor and the beneficiaries using an irrevocable trust, so the terms that you choose cannot be altered, or left open for interpretation and public disclosure.
  9. It Can Be a Beneficiary. A Combined Family Trust can be named as the beneficiary of life insurance and other accounts. In fact, it is one of the best ways to protect against your life insurance, 401k, IRAs, and other accounts being frittered away.
  10. A Bank for Your Family. Combined Family Trusts can serve as a Family Bank. It’s advantageous and prudent for members to use a Family Bank. Selected family can borrow, lend, and transact other functions directly with the family trust on more friendly terms than with an institutional bank.
  11. Flexible, Affordable, and Secure. It has never been easier, more affordable, and quicker to start a family trust than it is today. The growth of financial technologies has closed the loop between what was available for the ultra-wealthy and the middle-class. And Kiss Trust is at the forefront of this financial revolution. Our patented trust creation software, TrustWare, is built around saving you time and money.

It’s not hard to see why families are changing the way they save for their family’s future. Getting started is effortless and quick. Creating a trust is a breeze. And the rest is just a walk in the park. Trust, it’s what we do.

Learn More

Read More

Tags: Family Trust, Combined Family Trust

How to Create a Trust Online with Kiss Trust

Posted by Tyler Phelps, Vice President of Eastern Point Trust Company on Apr 21, 2016

How to create a custom trust online with Kiss Trust using TrustWare

Watch how to create a trust online with Kiss Trust using TrustWare! Don't worry about complicated trust forms, because you can build a custom trust in four easy steps just by answering easy questions, like who your beneficiary will be and when they can receive certain assets under specific conditions. Creating a custom trust has never been easier!

 
Get started for $20 (save 60%) when you share with your friends!
Share Now
 
Read More

Tags: Trust Fund, Life Hacks

Parents Are Rolling UTMA & 529 Plans into a Trust Due to These Tax Credits

Posted by Tyler Phelps, Vice President of Eastern Point Trust Company on Mar 25, 2016

office-620822_1920.jpg

The Shortcomings of Traditional College Saving Plans

Before trusts became a cost-effective tool for parents to save their child’s future education costs, accounts such as UTMA/UGMA and 529 plans were heavily used. 529 plans are the result of federal legislation that allowed parents to set money aside for college. However, time has shown that the high fund cost, limited investment selection, extra fees imposed by the states and restrictions of investment changes materially undermine the performance of 529 accounts. Fortunately, there is a simple, affordable, and prudent solution to their dilemma – college savings trusts.

Using Trusts to Save For College Expenses

Trusts are great tools for parents or grandparents with a desire to jumpstart their loved one’s future by saving for college expenses and beyond. Trusts can:

  • Protect assets from creditors
  • Limit the use of money for specific purposes beyond education (while the grantor is living or deceased)
  • Be named as the beneficiary of life insurance policies, 401k plans, IRAs, brokerage accounts, bank accounts, and more
  • With a properly drafted trust reserve the student’s eligibility for student aid and maximize their FAFSA awards, grants, and scholarships
  • Earn up to $600 in LTCGs, tax exempt, as of 2016

The student reaps the benefits of the college savings trust without any of the negative financial aid implications that UTMA, UGMA, and 529 plans carry. It gets even better! The trust can also safeguard the student’s eligibility for both of the federal educational tax credits, when properly drafted (like a Kiss Trust).

Parents can benefit from these educational tax credits

 The American Opportunity Tax Credit:

  • Can be utilized throughout a student’s first four years of college while pursuing an undergraduate four-year degree
  • Is worth up to $2,500 toward tuition, course-related books, supplies, and equipment
  • Can be refundable up to 40%, or $1,000, even when the student owes no taxes for the given year

Learn more about the American Opportunity Tax Credit.

The Lifetime Learning Tax Credit:

  • Can be claimed for an unlimited number of years while the student is pursuing a postsecondary degree
  • Is worth up to $2,000 toward tuition, course-related books, supplies, and equipment
  • Can’t be used with the American Opportunity Tax Credit (which is usually a higher value)

Learn more about the Lifetime Learning Tax Credit.


Problems for Parents with UTMA Accounts

Get Started

Take advantage of these tax credits while benefiting from the control provided for by a College Savings Trust. With a Kiss Trust, you can create an educational trust for your child, grandchild, or family and friends for a one-time fee of $49. TrustWare™, brought to you by Kiss Trust, hands anyone the power to build unique trusts without the help of an attorney, saving you time and money. Get started today, or chat with our support team to learn more!

Start a Kiss Trust today for just $20 (which is regularly $49) click here for more information.

Start Today for Just $20

Read More

Tags: College Savings, UTMA

Kiss Trust

Creating a Trust
Has Never Been Easier

Kiss Trust is the only patented total trust solution in America. Kiss Trust Is a self-help trust creation tool with integrated trustee services and access to over 5,000 mutual funds, 1,000 ETFs and a brokerage account with stocks and bonds. Kiss Trust lets you create a powerful custom irrevocable trust without the expense and trouble of hiring an attorney.

Subscribe to Email Updates

Hours & Info

PO Box 536
Warrenton, VA 20188

540-347-6620
8:00 AM To 4:00 PM EST