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Testamentary Trusts

October 26, 2023

Testamentary Trusts can be an essential tool for managing assets and helping to secure your family's future. We will explore the benefits of a Testamentary Trust and how it may be able to help you.

A Testamentary Trust is a trust established through a will or other testamentary document after the death of the Grantor. Let's explore its benefits for individuals and families in managing assets and planning for the future.

Here are a few benefits of a Testamentary Trust:

Benefit 1: Long-Term Provision for Beneficiaries

A Testamentary Trust can help to ensure the needs of beneficiaries are met over time. Specific provisions can be established in the trust to dictate how assets are to be invested and distributed to beneficiaries. This helps ensure that the beneficiaries are provided for, even if they are minors or lack financial management skills.

Benefit 2: Enhanced Flexibility in Estate Planning

Establishing a Testamentary Trust through a will can provide the Grantor greater control over asset management and distribution after their death. This can bring peace of mind, ensuring assets are distributed according to their wishes.

Benefit 3: Asset Protection from Creditors and Lawsuits

Assets placed in a Testamentary Trust may be shielded from potential claims by creditors or lawsuits. This protection ensures assets are not lost during legal disputes or bankruptcy proceedings.

Benefit 4: Potential Tax Benefits

Depending on estate size and other factors, a Testamentary Trust may help reduce tax obligations, providing more flexibility in estate planning.

Benefit 5: Privacy and Confidentiality

A Testamentary Trust can offer privacy and confidentiality in asset management and distribution. As it is established through a will or testamentary document, the trust's details and contained assets remain private, unlike typical public probate proceedings.

In summary, a Testamentary Trust can be a valuable tool for individuals and families looking to manage their assets and plan for the future. Its provisions can help provide for loved ones and align with the Grantor's wishes. Consider this trust as an essential component of your estate planning.

Securing your financial future and protecting your loved ones' interests starts with proper planning. To explore Testamentary Trusts further, schedule an appointment using the link below!

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Note: Investment strategies and specific investments mentioned may not be suitable for everyone. Individual decisions should be made after careful consideration of one's financial objectives, situation, and needs. This information is not intended as a personalized recommendation. Seeking advice from a personal investment advisor is recommended.

Please note that representatives do not offer tax or legal advice. Discussions related to taxes are purely informational, not exhaustive, and should not be interpreted as legal, tax, or accounting advice. It is advisable for clients to consult with qualified legal, tax, and accounting advisors as needed.

Securities and investment advisory services are provided through registered representatives of MML Investors Services, LLC, a member of SIPC.