Here are some of the trust planning options offered by Blanton Kirk Lumpkins:
"Generation X" Living Trust Plan: A Special Option for Younger Married Couples or Single Parents
Do you have minor children? Are you hard at work building your family's nest egg for the future? To respond to key concerns expressed by younger clients with minor children, we have developed an affordably priced trust planning option called the "Generation X" Living Trust Plan.
This plan is designed to help ensure that, in the event of an untimely death, your assets will be protected for the benefit of your children and your children will be cared for in the manner you choose.
The "Generation X" Trust also provides tax benefits for your family's assets as they grow over time. In addition, the trust-based structure means that your survivors will be freed of as many procedural burdens as possible.
Independence Trust
Blanton Kirk Lumpkins attorneys know seniors have special concerns. In addition to the many tax-planning and administrative benefits of trusts, this specific trust provides that:
- You will be cared for-in the event of incapacity-in the manner and facility of your choosing and what funds will be used
- A private determination of mental incapacity can be made, if needed, by a panel you appointed via the trust, avoiding court proceedings.
While the Independence Living Trust plan meets the key needs of many seniors, the plan is not as customizable as our Traditional Living Trust Portfolio. Your attorney will review the limitations with you, because your family structure, asset level or other special concerns may require provisions not available in this option.
Traditional Living Trust Portfolio
If your circumstances or wishes go beyond the scope of our Generation X or Independence Trusts, the Traditional Living Trust Portfolio may meet your needs. This powerful, flexible plan can stand alone and provide protection for most couples or individuals, or can be augmented with additional planning strategies to address virtually any concern or level of protection.
Irrevocable Life Insurance Trust (ILIT)
Designed to augment a Traditional Living Trust Portfolio, an Irrevocable Life Insurance Trust (ILIT) can provide a way to transfer large sums of money to children, income tax-free and estate tax-free. In these trusts, estate money is used to pay the premiums on life insurance with specified beneficiaries. In addition, clients often wish to provide a source of tax-free funds to pay estate taxes, and these trusts can be used to help address this need.
Irrevocable Trusts for Children
Parents often wish to set aside funds for children or grandchildren, which can be used for education or medical expenses. Some clients wish to provide "rainy day" or retirement money for their adult children. These trusts are similar to the Irrevocable Life Insurance Trusts.
Individual Retirement Account (IRA) Trust Plan
If a person dies as the owner of a large IRA, the combination of income taxes and, potentially, estate taxes, can be devastating. This double tax can be avoided with careful planning. Part of this planning involves the "stretch-out" of the IRA, i.e., keeping the tax deferred compounding going for as long as possible. With larger accounts, the solution can be an IRA Trust.
The IRA Trust is drafted to specifically address the nuances of the IRA regulations. When integrated with other planning such as a Traditional Living Trust, the financial benefits to children and grandchildren can be substantial.
Dynasty (Generation-Skipping) Revocable Living Trusts
Generation-Skipping Trusts are Revocable Living Trusts designed to pass significant wealth down to multiple generations, free from the federal estate tax after the first generation. Individuals can put $2 million ($4 million for married couples) into generation-skipping trusts, popularly known as Dynasty Trusts. Once these trusts are established and funded, they are never again subject to estate tax and can last for many generations.
Dynasty (Generation-Skipping) Irrevocable Life Insurance Trusts
Dynasty Trust provisions also can be integrated into Irrevocable Life Insurance Trusts. Depending on the client's age and health, a large amount of life insurance can be acquired with the payment of a relatively small premium. This leveraging, coupled with the compounding of the trust principal inside the Dynasty Trust once the insurance pays off, can lead to remarkable sums over time.
Special Needs Planning
The focus of our Special Needs Planning is to enable the trustee to divert the flow of trust funds, if necessary, in order for the child to remain eligible for government programs. With proper planning, the "special needs" individual can remain qualified for assistance under various government assistance programs while still enjoying family-provided funds, which may substantially enhance the individual's quality of life and family's peace of mind.
Medicaid Planning
Medicaid Planning has been severely restricted since the passage of the 2005 Deficit Reduction Act. Because the "Look-back" period is now for the five years prior to application, any transfers of funds must happen earlier. We can help you understand all your options.
Philanthropic Planning
There are many ways to make substantial contributions to one's favorite charity. Some of the techniques available are "tax-advantaged," either with respect to estate tax or income tax, or both. Two of the more popular methods are Charitable Remainder Trusts (CRT), Charitable Lead Trusts (CLT). Both provide opportunities for making donations, yet continuing to enjoy income and tax-advantages from the assets.
To discuss how we can assist you, please call us at 804.756.4600 or complete our brief Client Inquiry Form.
Our business is guarding and preserving all that you hold dear.
