Fiduciary Trust Company published a white paper focusing on strategies in both creating and modifying long-term trusts.
The white paper: “Adaptable Trusts: Changing the Game Plan at Halftime,” outlines the recent trends that favour the creation of longer-term or even perpetual trusts. It details the alternatives available to clients to instil a level of flexibility that can accommodate changes in circumstances. The paper also highlights how clients can use “decanting” strategies to restructure irrevocable trusts, and outlines the various considerations in doing so for high-net-worth families.
“An effective trust merges practical governance with often deeply personal considerations, and it can be very difficult to modify trusts as circumstances change,” says Stacy K Mullaney (pictured), Vice President and Chief Fiduciary Officer of Fiduciary Trust. “Individuals in the planning stages should understand the tradeoffs as they explore all of the different mechanisms and vehicles available to them.”
“Long-term trusts are a critical, and often the cornerstone piece, in estate planning,” adds Austin V Shapard, President and CEO of Fiduciary Trust Company. “A carefully thought out plan will facilitate not only tax-efficient wealth transfer strategies, but will also support sound investment management across generations. Our advisors are skilled in managing all aspects of trust creation, including financial, legal and tax considerations.”
The white paper, which was published in January, is available to download at the Fiduciary Trust Company website.