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):
- 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).
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.