Expert planning for today's needs and tomorrow's dreams
Trust and estate planning is anything but a one-size-fits-all undertaking. Our clients' financial situations are unique and complex, and they require sophisticated strategies.
Your BB&T Wealth advisor helps you think through the important questions in order to design a blueprint that provides for your family, protects your assets and defines your legacy for generations to come.
As a BB&T Wealth client, you'll also have access to a wide array of trust account options.
Avoid the costs and hassles of probate while preserving privacy and relieving the burden of asset transition
During your life you may add, withdraw, buy or sell any asset as you would today, and the tax status of a revocable trust remains the same as if you owned the assets in your name, which:
- Allows for the ability of a successor trustee to maintain your financial well-being upon incapacity
- Assists in relieving a burden and liability on family members
- Provides an immediate transfer upon your death to maintain continuity for your spouse or heirs
- Avoids probate fees and maintains privacy
Special needs trusts
Ensure that your special-needs beneficiary remains eligible for government programs
Specifically drafted to provide for your loved one's well-being without jeopardizing their eligibility for government benefits, the uses for a special needs trust include:
- Caregiving – a personal attendant or therapies not covered by Medicaid
- Experiences – travel or special events
- Services – mobile phone, Internet, house cleaning
- Durable goods – furniture, clothing, computer
Endow your beneficiaries while promoting positive life choices
Designed to encourage your heirs to live a responsible life, incentive trusts specify certain conditions prior to inheritance, such as:
- Reaching a certain age
- Graduating from college, marrying, serving the community, carrying on the family business or other life events
- Avoiding illegal drugs, alcohol abuse, gambling, or other potentially destructive behaviors
Irrevocable life insurance trusts
Take advantage of a purposeful loophole created by Congress, using little-to-no lifetime exemption in most cases
If an ILIT is created to own a life insurance policy, and the proceeds of the policy are payable to the trustee, then it can:
- Avoid insurance cash value or death benefit from becoming a part of your estate
- Be used to provide liquidity for estate taxes and other debts by purchasing assets from the grantor's estate
- Protect assets from creditors of a beneficiary given the trustee's discretionary power over distributions
- Leverage the grantor's generation-skipping tax exemption
Qualified personal residence trusts
Reduce the gift or estate tax on transferring a residence
For those who have a substantial estate and expect to face future transfer taxes, a qualified personal residence trust:
- Is a lifetime transfer of a personal residence (primary, vacation or second home) to the trust
- Provides continued rent-free use of the residence for the term of the trust
- Greatly reduces the gift or estate tax cost of transferring a residence
Intentionally defective grantor trusts
Enable your heirs to receive income earned from the trust free of income tax liability
A tool used to lower your taxable estate while providing extra wealth for your beneficiaries, the intentionally defective grantor trust:
- Usually is funded through an irrevocable gift or the installment sale of an asset
- Removes assets completely from the grantor's estate
- Freezes assets for estate tax—not income tax—purposes
- Provides beneficiaries with appreciating assets without incurring additional transfer taxes
Grantor retained annuity trusts
Transfer wealth while minimizing estate tax exposure for your beneficiaries
For individuals wishing to maintain control and a right to distributions for a period of years, a grantor retained annuity trust:
- Entails a transfer of cash or property into a trust in exchange for an annuity payable to the grantor for a fixed term
- Is most effective in a low interest rate environment
- Offers cash flow advantages and predictable tax results
Charitable remainder trusts
Increase your current cash flow while reducing capital gains and estate taxes
For donors with appreciating assets who want to retain an attractive income stream, a charitable remainder trust:
- Provides an immediate charitable income tax deduction
- Allows for the sale of transferred property with no immediate tax consequences
- Includes a life insurance option to avert a "lost inheritance" occurrence
Charitable lead trusts
Provide for your heirs while leaving a sizable charitable gift
Especially beneficial in low interest rate environments where the goal is to pass remainder interest to family members, a charitable lead trust:
- Provides for annual distributions to one or more charities for a set number of years
- Allows the donor to control the ultimate disposition of the trust
- Is a tax-efficient means of making a future transfer to heirs
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The information provided should not be considered as tax or legal advice. Please consult with your tax advisor and/or attorney regarding your individual circumstances.