Is a Trust Right for You?

Trusts can be an efficient way to provide the next generation with a financial legacy — but that’s not all. Here, Merrill Lynch Wealth Management explores some of the lesser-known benefits of trusts.

Many people assume that trusts are only for the very wealthy. That is not the case. “Trusts are tools that give you very specific control over how your wealth is used and protected, no matter how much money you have,” says Kevin Hindman, managing director and national trust executive at Merrill Lynch Wealth Management. They can be set up while you are alive to provide for the management of assets in the event that you or a loved one becomes incapacitated — a valid concern given our increasing life spans and the prevalence of conditions like Alzheimer’s. But they are also very useful as a way to help ensure that your money is distributed as you wish after you are gone. Here are three potential benefits to consider.

More control. You can use a trust to set rules or conditions about when and how your beneficiaries will receive their inheritance. For instance, if you prefer that your son pursue a professional degree or start a career rather than buy sports cars, you could establish a trust that sets a specific age or milestone, like graduating from law school, or turning 30, before the money is made available. Trusts can also help you reach charitable goals or improve tax efficiency.

A measure of protection. Trusts can help ensure that your children, grandchildren or other loved ones receive their inheritance if you divorce or remarry. They can also help shield assets if you or your heirs are in professions, such as surgery, that come with a high risk of litigation.

Investment guidance. A trust lets you designate a professional money manager, so if loved ones can no longer handle investments, family property or a business, they might be protected from costly mistakes. The same goes for heirs who are too young to invest and manage an inheritance.

For more information, contact The Menashe Morley Group in the Rancho Santa Fe office 858-381-8113. The Menashe Morley Group, serving the community for over 34 years: David Menashe is a Senior Vice President and Wealth Management Advisor, Bruce Morley CRPC ® is a First Vice President and Wealth Management Advisor and John Naviaux CPWA ® is a Vice President and Wealth Management Advisor. Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and other subsidiaries of Bank of America Corporation. Investment products: Are Not FDIC Insured, Are Not Bank Guaranteed, and May Lose Value. MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corporation. Trust and fiduciary services are provided by U.S. Trust, a division of Bank of America, N.A. Member FDIC. Merrill Lynch, U.S. Trust and their affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. © 2018 Bank of America Corporation. All rights reserved. ARRN6NLH