Wealth Preservation LLC

Legacy Trust

A Legacy Trust is the most advanced trust available today. First used by the Carnation and Kennedy Families, it is a multi-generation bloodline trust that offers asset protection from creditors, divorcing spouses and business failures. The trust can pass assets to future generations free of estate taxes. A Legacy Trust is in addition to your Revocable Living Trust.

To provide you with an overview of the distinctiveness of the Legacy Trust, listed below we have briefly explained some of its unique characteristics:

1. Avoids estate taxes for three generations or more, regardless of the growth of the assets.

2. Provides protection for your loved ones as the assets remain in the trust.

3. Allows control by each generation, with or without restrictions.

4. The trust sub-divides into the same amount as there are beneficiaries named.

5. The beneficiary(ies) becomes trustee(s) and retains power of appointment over the assets in the trust.

6. The trust assets offer divorce and creditor protection.

7. Each beneficiary can distribute money to themselves from their own trust.

8. The trustee has the power to loan the principal and interest to the beneficiary.

9. In the event the beneficiary does not withdraw all of the trust funds, the beneficiary then has the power to appoint the funds to the beneficiary's heirs (your future grandchildren).

10. The trust may continue through the youngest beneficiary's lifetime, plus 21 years (between 80-100 years), offering estate and asset protection to all beneficiaries.

11. The cash in the Legacy Trust can come from life insurance proceeds, which can be used to purchase assets from the creator's estate and help to liquefy the estate in order to pay the estate taxes due.

12. The trust can provide a bail-out provision giving the power to wind-down the trust by distributing out all assets while the creators are still alive, thus providing additional flexibility.

13. The trust can be established as either a joint or single-donor trust.

14. If it is established as a single-donor trust, one spouse can be the trustee and primary beneficiary and the other spouse can be the trust creator.