Consider your grandchildrenBENEFITS OF A HERITAGE TRUST

The use of a Heritage Trust may be the perfect estate plan for your children and other descendants. The following is a summary of the benefits of using a Heritage Trust for your family members. While they can be used for any beneficiary, this list assumes that the trust has been established for a child.

  1. The child can be the trustee of his or her own Heritage Trust and can manage the trust property, but there should be more protection available if a third party (known as the Distribution Trustee) is the trustee determining distributions to be made to your child.
  2. The income and principal of the Heritage Trust can be kept in the trust or distributed to the child.
  3. Property in a Heritage Trust should be protected from the child’s creditors. This may be very important if the child’s career has the potential for lawsuits. This protection is achieved by having a Distribution Trustee control distributions to the beneficiary.
  4. Property in a Heritage Trust should be protected from the child’s spouse in the event of a divorce.
  5. When the child dies, the assets should not be subject to estate taxes.
  6. When the child dies, the assets should not be subject to generation-skipping taxes.
  7. The child can be given the right to change the distribution of the trust’s assets at his or her death among his or her children, grandchildren or other persons. This allows the child to take into account circumstances if one or more of them has a greater need for money or becomes irresponsible.
  8. If the child is successful and has created his or her own estate, a Heritage Trust will allow the child to keep those assets separate from his or her own assets.
  9. The use of a Heritage Trust within an Irrevocable Life Insurance Trust may allow you to leave much more to your descendants’ estate tax free than the amount of the life insurance.
  10. By having assets in a Heritage Trust, your child and descendants do not have to do estate planning for those assets, since you have already done the planning for them.


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