Trusts

Trusts are one of the most powerful and flexible arrangements you can use to protect your family from the unpredictable changes of life. More than any other financial arrangement, trusts increase the probability that your personal and financial goals are reached.

Trusts help in the following way:

  • Preserve control over disposition of assets
  • Maximize effective tax planning
  • Protect you and your family from lawsuits – frivolous or otherwise
  • Flexible to changing family needs

Alaska’s trust-friendly laws provide for more estate planning options than any other state and are a safe and secure alternative to offshore trusts and banking.

More Information About Special Needs Trusts

Types of TRUSTS

PERPETUAL (DYNASTY) TRUSTS

A perpetual (dynasty) trust is one of the most powerful tools in preserving family wealth. Dynasty trusts can last for as long as the family desires, and theoretically could last forever. If properly structured, it will be exempt from estate and generation-skipping transfer taxes for as long as the trust lasts. Due to the transfer tax-free compounding, the trust will accomplish significant wealth accumulation.

After-Tax Growth Value of Perpetual Trust
After 120 Years		 Value of Property if
No Trust
3.00% 34,710,987 2,169,437
4.00% 110,662,561 6,910,410
5.00% 348,911,561 21,806,999
6.00% 1,088,187,748 68,011,734
7.00% 3,357,788,383 209,861,774
8.00% 10,252,992,943 640,812,059
9.00% 30,987,015,749 1,938,688,484
10.00% 92,709,068,818 5,794,316,801

SELF-SETTLED SPENDTHRIFT TRUSTS (DAPT)

This type of trust allows you to remain a potential beneficiary of a trust you created in Alaska without exposing its assets to claims of your creditors or those of other beneficiaries. It also can provide significant tax savings.

“OPT-IN” COMMUNITY PROPERTY TRUSTS

Alaska is the only state that permits couples, whether or not they reside in Alaska, to choose a community property regime for the ownership of some or all of their assets which, for many, may produce income tax and estate tax advantages.

LIFE INSURANCE TRUSTS

Provides the most effective method to leave life insurance proceeds to beneficiaries gift and estate tax free.

CHARITABLE TRUSTS

Trusts that can be established to transfer assets to children or grandchildren at a greatly reduced gift and estate tax cost. Can also be used to gift assets to charity to receive a current income tax charitable deduction.

GRANTOR-RETAINED ANNUITY TRUSTS (GRATs)

Grantor-retained annuity trusts (GRATs) allow large financial gifts to family members at reduced estate and gift tax costs.

REVOCABLE LIVING TRUST

 

Avoid probate, retain control of the assets during your life, and protect assets and

yourself if you become disabled.

 

IRREVOCABLE LIVING TRUST

 

Avoid probate and give up control of certain assets to reduce your taxable estate, and

provide creditor protection.

 

SPECIAL NEEDS TRUST

 

The SNT is a form of discretionary, spendthrift trust designed to preserve government

benefits for a disabled or aged beneficiary. Distributions from the trust are intended to

supplement public benefits, not supplant them.

 

QUALIFIED PERSONAL RESIDENCE TRUST

 

Can be used to transfer a residence (or values of residence) at reduced estate and gift tax

(QPRT) cost.

 

CREDIT SHELTER TRUST OR BYPASS TRUST

 

Provide for maximum use of the unified credit in the estates of both spouses.

 

QTIP TRUST (Qualified Terminable Interest Trust)

 

Provide income from trust assets to your spouse for life and quality for the marital

Interest Trust) deduction, but upon your spouse's death, regain the income for yourself and retain

control over who will receive assets.

 

CHARITABLE REMAINDER TRUST

 

Maximize use of appreciated assets, provide income to you or other family members, and

then gift assets to charity to receive a current income tax charitable deduction.

 

CHARITABLE LEAD TRUST

 

Provide income to charity and ultimately can be used to transfer trust assets to children

or grandchildren at a greatly reduced gift and estate tax cost.

 

GENERATION-SKIPPING TRUST

 

Leave assets for your grandchildren (and more remote descendants) while taking
advantage of the $5 million exemption ($10 million for married couples) from the
generation skipping tax.

 

DEFECTIVE GRANTOR TRUSTS

 

Used to increase gifted assets to younger generation without additional gift taxes.

 

MINOR TRUST / 2503c TRUST / THE EXTRA CRUMMEY TRUST

 

Allow gifts to qualify for the $13,000/$26,000 annual gift tax exclusion.