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What Type of Trust is Best for You?

Marital or "A" Trust

Designed to provide benefits to a surviving spouse; generally included in the taxable state of the surviving spouse.

Bypass or "B" Trust

Also known as credit shelter trust, established to bypass the surviving spouse's estate in order to make full use of any federal estate tax exemption for each spouse.

Testamentary Trust

Outlined in a will and created through the will after the death, with funds subject to probate and transfer taxes; often continues to be subject to probate court supervision thereafter.

Irrevocable Life Insurance Trust (ILIT)

An irrevocable trust is designed to exclude life insurance proceeds from the deceased’s taxable estate while providing liquidity to the estate and/or the trusts' beneficiaries.

Charitable Lead Trust

Allows certain benefits to go to a charity and the remainder to your beneficiaries.

Charitable Remainder Trust

Allows you to receive an income stream for a defined period of time and stipulate that any remainder should go to a charity.

Generation-skipping Trust

Using the generation-skipping tax exemption, permits trust assets to be distributed to grandchildren or later generations without incurring either a generation-skipping tax or estate taxes on the subsequent death of your children.

Qualified Terminable Interest Property (QTIP) Trust

Used to provide income for a surviving spouse. Upon the spouse’s death, the assets then go to additional beneficiaries named by the deceased. Often used in second marriage situations, as well as to maximize estate and generation-skipping tax or estate tax planning flexibility.

Grantor Retained Annuity Trust (GRAT)

Irrevocable trust funded by gifts by its grantor; designed to shift future appreciation on quickly appreciating assets to the next generation during the grantor's lifetime.

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