Why establish a trust?

Trusts provide some of the most powerful and flexible estate planning options available today, both by themselves and when used in combination with "Family Limited Liability Companies," "Family Limited Partnerships," or other entities. This is particularly true in Alaska which ranks at the top in terms of its "trust and business friendly" atmosphere and progressive trust laws.

Is a trust right for you? That depends on your personal situation. After talking with an attorney, you may decide that you have no need for a trust. Or, you may find that a simple-to-administer revocable living trust would meet your needs. Going further, you may discover trust options that you never knew existed that would be of invaluable benefit to you and your loved ones. You may end up establishing several trusts, each with a different purpose.

No single trust can offer all of the following advantages, but the following is a sample of the broad range of possibilities that are available depending on the type of trust:

  • Avoidance of probate in your home state
  • Avoidance of ancillary probate in other states where you own real property
  • Privacy
  • Providing for the management of your assets if you become incapacitated
  • Providing for ongoing management of assets for loved ones who may not have the time, experience, or impartiality necessary to manage the details of a trust.
  • Providing incentives for children to further their education
  • Providing for special needs of handicapped loved ones
  • Providing for children of your marriage in the event that your spouse remarries after your death
  • Holding assets for the benefit of minor children
  • Asset protection for you or for your loved ones (protection from creditors, predators, and bad marriages)
  • Preserving your family's heirloom lake property for future generations
  • Estate and gift tax planning
  • Generation Skipping Transfer Tax planning (i.e.- providing for your grandchildren and future descendants)
  • Income tax planning
  • Business succession planning, often in conjunction with limited liability companies or other entities
  • Retirement planning