Personal Trust Overview
A personal trust - like a will - is a method to pass property, upon the death of an individual, to loved ones and charitable causes. While a will exposes the estate to the probate process, a trust avoids probate, safeguards privacy, and may help to avoid estate taxes. Trusts can be a flexible solution for managing personal and business assets.
A Personal Trust allows the grantor to:
- Support a surviving spouse
- Provide for children or grandchildren
- Potentially reduce estate taxes
- Distribute assets to heirs without probate costs or delays
For business owners, a Personal Trust could resolve some of the following succession issues for their company:
- Will ownership be transferred to beneficiaries, current employee(s) or new owners?
- What business continuation agreements are in place and will such plans require funding?
- Will assets be liquidated for distribution, and if so, how?
- Can asset protection from creditors and lawsuits be achieved?
There are many advantages in choosing Principal Trust Company as your trustee. As grantor your trust will benefit from:
- Maintaining a trust under Delaware state laws - which include asset protection, state-level taxation exclusions, privacy and confidentiality - to name a few.
- Appointment of a corporate trustee helps ensure you will not have to worry about the health and competence of the trustee; in addition, your wishes will be executed by unbiased and experienced trust professionals.
- Working in conjunction with your financial professional allows your trust to incorporate your overall goals and financial strategies as part of your estate planning process.
To learn more, visit our Trust FAQs.
For more information on selecting Principal Trust as your trustee, call (800) 332-4015 or email Laura Johnson.
