Selecting a Trust for Your Situation
AMG administers many different types of trusts. Our advisors can work with your estate planning attorney to help you evaluate the benefits of each type of trust to identify one that meets your needs.
- Charitable Remainder Trust (CRT) – An irrevocable trust that pays a predetermined percentage of trust income to a non-charitable beneficiary during that beneficiary’s lifetime. After the death of the beneficiary or beneficiaries, the charitable beneficiary receives the remaining assets of the trust.
- Charitable Lead Trust (CLT) – A trust that pays its income to a charity for a specific period of time, after which the trust’s remaining assets are given to its grantor’s family or another non-charitable beneficiary.
- Dynasty Trust – A long-term irrevocable trust designed to hold assets in trust without direct ownership being transferred to any beneficiary. Instead, successive generations may receive distributions from trust assets or assets that remain held in trust, allowing for future benefit and growth.
- Family or Credit-Shelter Trust – This trust is designed for married couples to maximize the use of each spouse’s estate tax exemption. The trust is funded upon the death of the first spouse to provide for the surviving spouse or other beneficiaries. At the death of the surviving spouse, remaining assets pass to named beneficiaries, usually children.
- Generation-Skipping Trust – A trust in which the contributed assets are passed down to the grantor’s grandchildren, not the grantor’s children. The generation to which the grantor’s children belong skips the opportunity to receive the assets in order to avoid the estate taxes that would apply if the assets were transferred to them.
- Grantor Retained Annuity Trust (GRAT) – This trust allows the grantor to transfer a remainder interest in trust assets to beneficiaries on a tax-favored basis. Should the assets appreciate and exceed the amount paid to the grantor, the excess is available for the beneficiaries.
- Marital Trust – This trust allows one spouse to transfer an unlimited amount of property for the benefit of the other spouse without incurring gift or estate taxes at the first spouse’s death.
- Qualified Personal Residence Trust – A trust that involves the transfer of a personal residence to one or more beneficiaries while the grantor retains an ownership interest or the ability to live in the residence.
- Qualified Terminable Interest Property Trust (QTIP) – A marital trust that allows, at the death of the surviving spouse, remaining trust property to pass to beneficiaries selected by the grantor.
- Revocable Trust – A living trust that can be terminated or amended by the grantor. Usually set up by a person during his or her lifetime for his or her own benefit or the benefit of someone else.
- Self-Settled / Asset Protection Trusts – An irrevocable trust that holds an individual’s assets like real estate, bank accounts, investment accounts, personal possessions, and automobiles to shield them from creditors.
- Special Needs Trust (Supplemental Needs Trust & Disability Trust) – A trust established to provide resources for the special needs of a disabled person while maintaining his or her access to governmental benefits.
- Spousal Lifetime Access Trust (SLAT) – This irrevocable trust is created by one spouse for the current benefit of the other spouse and future benefit of family members like children or grandchildren. The grantor spouse uses a gift tax exemption to make a gift to the trust.