When Do Trusts Make Sense for Families?

(The Wall Street Journal, 23 July 2015)

Summary: While the legal costs of setting up trusts can be high, trusts are effective ways for families to pass wealth to their heirs, especially in complicated family situations.

Our Thoughts: Other compelling reasons to set up trusts, and charitable remainder trusts in particular, include:

• Diversifying highly appreciated assets
• Deferring tax on the sale into the future
• Generating an income stream for life (or a set term)
• Generating an income tax-deduction up front
• Benefiting charity in the future, usually upon the death of the last grantor