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Trust Services as Components of Wealth
Management
Personal trusts are the legal
instruments that can put financial and
estate planning blueprints into motion.
A trust can be an effective way to
accomplish tax-efficient giving, wealth
preservation, and wealth transfer.
While Coral Gables Trust does not handle
estate planning or create personal
financial plans, our personalized,
professional approach to service does
include reviewing existing wills, making
recommendations, and referring clients
to leading qualified professionals in
the area.
Strategies to Protect and Enhance Wealth
Coral Gables Trust offers reliable trust
services, including
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Full-service trust administration
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Objective, reliable advice
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Investment management
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Advice concerning insurance needs
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Review of estate planning issues
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Wealth transition planning
Personal Attention in Planning for
Special Situations
We can help you plan effectively for
highly personalized wealth management
challenges. These issues may include asset
protection by
titling certain assets as trusts or
limited partnerships, structuring family-owned
businesses to
avoid estate tax obligations that could
force liquidation, and business
succession planning. Trusts
can also be set up to care for a disabled
family member in
perpetuity without causing the loss of
government benefits.
What is a Trust?
A trust is a written agreement between
two parties for the benefit of a third
party. The first party, known as a Grantor,
transfers property to and dictates the
terms of, the trust. The second party,
either an individual or institution such
as Coral Gables Trust Company, is the Trustee.
The trustee receives title to the
property placed in the trust and
generally manages and distributes income
and principle according to the terms of
the trust document. The third party is a Beneficiary who
receives the benefit of the trust.
Trusts can take effect either during a
lifetime or after death, and can be
changed, modified, or cancelled at any
time, or they can be restricted from
change, modification, or cancellation.
Uses of a Trust
Trusts are tailored to personal,
family, and business needs.
Some reasons for setting up a trust
are:
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A trust is an ideal
mechanism for securely passing wealth from one
generation to the next. |
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Trusts can realize
significant tax
savings. |
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A trust can provide professional
investment management. |
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In the event of the absence
or disability of
the Grantor, the trustee will provide for the
beneficiaries' needs pay bills, and invest assets
wisely. |
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A trust can provide asset
protection. |
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A trust can protect
the income stream. |
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A trust can provide financial
harmony for
a family. |
TYPES
OF TRUSTS
Revocable Living Trust
Also called an inter vivos trust, this
flexible estate planning tool primarily
helps individuals avoid probate. It can
be changed or terminated at any time.
Irrevocable Trust
Assets placed in an irrevocable trust
are not counted as part of a person's
estate, thus saving on estate taxes. The
provisions of the trust cannot be
altered, although the trustee may be
changed.
Testamentary Trust
Established under a will, it goes into
effect at the time of death. Subject to
probate, this trust controls how assets
are divided, and under what
circumstances they are distributed,
among beneficiaries.
Children's Trusts
These provide more flexibility and
control of college savings and other
assets than direct gifts do.
TAX PLANNING AND PHILANTHROPIC
SOLUTIONS
Personal trusts can function as tools to
control and manage benefits during and
after your life, safeguard assets, and
avoid the costs, time delays and
publicity of probate. We can help to
customize a solution for you and your
family.
Outright Gifts
These gifts to a favorite charity are a
method for reducing a taxable estate.
These are made at the donor's death.
Donor-Advised Funds
These funds allow gifts to tax-qualified
public charities to be deducted in the
year the contribution is made.
Charitable Gift Annuities
With this instrument, a donor can
receive guaranteed income for life in
exchange for making a direct gift to a
charity.
Charitable Remainder Trusts
This type of trust offers significant
financial and estate planning benefits.
These irrevocable trusts let donors
avoid immediate capital gains taxes on
the sale of appreciated assets, while
allowing them to receive income from the
trust's assets.
Family Foundations
They can take the form of personal
charitable foundations, standalone
foundations, or public foundations. All
have tax advantages during your
lifetime, and let the donor direct, to
varying degrees, the management and
distribution according to specified
wishes.
Coral Gables Trust
and its representatives do not provide
tax or legal advice. Please consult your
personal tax advisor or attorney for
matters involving taxation and tax
planning, and your attorney for matters
involving personal trusts and estate
planning.
Glossary of Terms
Will
A will is a legal document that provides
instructions, upon your death, for
distribution and management of your
property. Dying intestate (without a
will) is something to be avoided,
because it provides for the state
government to distribute your assets.
This process is often costly, lengthy,
and may not be in accordance with your
wishes.
Power of Attorney
This is a legal document that can give
another person the legal authority to
act on your behalf, usually in
situations involving illness or
incapacity. A power of attorney ends
with an individual's death.
Trust
Also a legal document, a trust is set up
and recognized as a separate entity for
the purpose of managing assets. The
grantor (the creator of the trust) names
a trustee to oversee management and
fiduciary requirements of the trust
document, and chooses beneficiaries,
those who may receive assets in the
trust.
Executor
This is the person or institution named
in a will to carry out its instructions.
Called a personal representative in some
states, the executor inventories and
evaluates possessions, helps settle
bills and debts, prepares final tax
returns, and distributes the estate's
assets.
Conservator / Guardian
Typically, this is an individual named
to oversee the care and wellbeing of
another, such as an invalid or a minor
child. When the conservator is named by
a court, then court supervision is
required.
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