A personal trust is a legal arrangement that allows an individual (typically referred to in a trust document as the "grantor") to pass property to loved ones and/or charities upon his/her death.
A personal trust has a number of advantages over a traditional will and can be used for managing both personal and business assets.
A personal trust allows the grantor to:
- Manage distribution of assets to heirs over time
- Support a surviving spouse
- Provide for children or grandchildren
- Potentially reduce estate taxes
- Distribute assets to heirs without probate costs or delays
What's more, for business owners, a personal trust can help to resolve some of the following succession issues:
- Ownership transfer
- Asset liquidation and distribution
- Asset protection from creditors and lawsuits
There are many advantages Principal Trust Company can provide as trustee for a personal trust, including:
- Administration under Delaware state laws which provide asset protection, state-level taxation exclusions, privacy and confidentiality
- Peace of mind knowing the trust will be executed by an unbiased, experienced team of trust professionals
- Collaboration with a financial professional, as the relationship manager, to help ensure the trust will incorporate all financial and estate-planning goals
For more information about personal trusts, call Principal Trust Company at 1.800.332.4015 option 2, or visit our personal trust resource.