Tax Planning Using Alter Ego and Joint Partner Trusts

We spend a lot of time with our clients focusing on the tax effects of their financial structure. One strategy that many of our clients end up employing for tax planning purposes is an alter ego trust. We find that more and more, boomers and seniors are looking for alternatives to the traditional will and powers of attorney. Our clients want options to help them protect and pass along assets they have build up over a lifetime. Alter Ego and joint partner trusts are inter vivos trusts since they are set up during the lifetime of the settler.

When to use these trusts:

• If you are over 65 years of age;
• If you wish to continue to receive all of the income from the trust until your death;
• If you have beneficiaries who may need immediate access to your assets;
• If you have beneficiaries whereby you are concerned about a relationship of their gaining access to your estate.

Why consider trusts?

• Save time and eliminate probate;
• Ensure estate liquidity and continuity;
• Protect against estate litigation;
• Make best use of Capital Gains exemptions.