LIVING TRUST

A living or revocable trust allows you to remain both the trustee and the beneficiary of the trust while you’re alive. You maintain control of the assets and receive all income and benefits. Upon your death, a designated successor trustee manages and/or distributes the remaining assets according to the terms set in the trust, avoiding the probate process. In addition, should you become incapacitated during the term of the trust, your successor or  co- trustee can take over its management.

SPECIAL NEEDS TRUST

A special needs trust is typically designed to benefit a disabled individual. Instead of giving assets directly to the beneficiary, assets are transferred to a special needs trust by family members or as damages paid because of a lawsuit, and those assets are available for the beneficiary without disqualifying him or her from government programs, such as Social Security income and Medicaid. A special needs trust provides for supplemental care—which consists of items over and above necessities like housing, food, and clothing—and benefits the government provides.

SURVIVOR’S TRUST

A survivor’s trust is a trust created by an individual during life, and becomes irrevocable (cannot be changed) after his or her death, to provide for a surviving spouse, domestic partner, or other loved one(s). “Survivor’s trust” is a general term for a variety of common trusts, including trusts referred to as an A trust, marital trust, B trust, family trust, bypass trust, or credit shelter trust, among others. No matter what the type of trust, tax provisions, or family situation, individuals naming The Private Trust Company, N.A. (PTC) to serve as trustee of their survivor’s trust can take comfort in knowing it will administer their survivor’s trust for the benefit of loved ones competently, according to their wishes, and in the best interest of the significant others they leave behind.

CHARITABLE LEAD TRUST

To help benefit your favorite charity while serving your own trust purposes, you might consider a charitable lead trust (CLT). This trust lets you pay a stream of income to a charity from a particular asset for a designated amount of time, after which the principal goes to the beneficiaries, who can receive the property free of estate taxes.*

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*Please consult your attorney or tax advisor for income and gift tax consequences.

CHARITABLE REMAINDER TRUST

Another charitable option, the charitable remainder trust (CRT), allows you to receive a stream of income and a tax deduction at the same time, and ultimately leave assets to a charity. Through this trust, the trustee will sell the donated property or assets, tax deferred, and establish an annuity payable to you, your spouse, or your heirs for a designated period of time. Upon completion of that time period, the remaining assets go directly to the charity. Highly appreciated assets are typically the funding vehicles of choice for a CRT.*

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*Please consult your attorney or tax advisor for income and gift tax consequences.

GENERATION-SKIPPING TRUST

If you want to leave money to your grandchildren, you might consider a generation-skipping trust. This trust can help preserve your generation- skipping transfer tax exemption on bequests to your grandchildren and avoid the tax on bequests exceeding that amount, which can be up to 45%.

IRREVOCABLE LIFE INSURANCE TRUST

An irrevocable life insurance trust (ILIT) is often used as an estate tax-funding mechanism. Under this trust, you make gifts to an irrevocable trust, which in turn uses those gifts to purchase a life insurance policy on you. Upon your death, the policy’s death benefit proceeds are payable to the trust, which in turn provides cash to help beneficiaries meet estate tax obligations.*

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*Please consult your attorney or tax advisor for income and gift tax consequences.

TRUSTEED IRA

Also known as an individual retirement trust, a trusteed IRA is a trust account that provides preservation and control of your IRA assets. It allows you to combine your estate planning and retirement goals within a single framework.

ROLES OF YOUR PROFESSIONAL ADVISORS

Your financial advisor’s role is to support everyone, not to replace anyone. Your financial advisor will work with you and your tax and legal advisors, helping to coordinate and communicate your complete financial picture. The drafting of your trust document will be done by your estate planning attorney. The Private Trust Company is available to administer your trust once it’s properly drafted. You can continue to benefit from the judgment of your trusted financial advisor, while your family’s wealth is overseen by a knowledgeable trustee.