Banking & Finance - June 2023

June 2023 Special Section

Know the different types of Trusts

Brought to you

by - Geerdes & Associates

The best way to reduce estate tax liability and maintain control over your assets is to establish a trust - but you know that already. What you might not know are all the different types of trusts. For instance, spousal trusts are some of the most common types of trust, but depending on you and your partner’s specific needs, there are several types of spousal trusts that you may want to consider. Here are three of the most common spousal trusts:

The first spousal trust is one you’ve likely heard of - a marital trust. A marital trust is a trust created for the benefit of the surviving spouse. It ensures that everything in the trust is used for the benefit of the surviving spouse after the death of the first spouse.

It also delays estate taxes until the surviving spouse’s death.

The second type of spousal trust is called a bypass trust. Bypass trusts can only be created after the death of the first spouse and are used to greatly reduce the surviving spouse’s tax liability. Bypass trusts are helpful when the estate tax revenue is less than the combined exemption rates of both spouses and can completely exclude estate tax. However, bypass trusts are capped at the current tax exemption rate.

The third spousal trust is the Spousal Lifetime Access Trust (SLAT). For SLATs, only one spouse is a Grantor, or the person who creates and moves assets into the trust. In the creation of the trust, the Grantor spouse gives up all his or her rights to the funds in the trust so that the other spouse gains access to those funds instead, which is helpful for instances such as retirement accounts.

There are many more types of spousal trusts, so keep an open mind when reviewing your options, and always ask an estate planning attorney from your state for advice on your best course of action.

GEERDES

The Local banking difference

Brought to you by – Makisha Gann, Coastal States Bank

At Coastal States Bank, we’re Local. And Proud of It.® What Local means to us is relationships. It means community. It’s the relationships with our local builder, real estate agent or non-profit. It’s dedicating community service budgets to assist local organizations and community efforts. Local. And Proud of It.® is what drives every interaction we have with our clients and community. And when you choose to bank with us, you choose Local, too.

We strive to build relationships so

we can better understand our clients’ unique goals. Whether you own the mom-and-pop shop down the street or a large franchise, we serve you personally with our banking solutions for businesses, business owners and individuals looking for a local banking partner. We offer all of the power of a large bank, with the luxury of a team directly tied to your community.

Contact Makisha Gann, your local community banker to learn more about our best-in-class client services, competitive interest rates and customizable banking solutions.

Coastal States Bank – Local. And Proud of It.®

Helping you live your best life

Brought to you by - Wealthlink AdvisorsSha Grondin

I believe the starting point of any financial conversation should be with you—your life, your family, your priorities, and your goals. I’ll listen to what’s important to you and design a financial plan from multiple strategies specifically designed to help get you where you want to be.

When people feel better about their money, good things happen—they become more confident and feel more secure. For more than 160 years, Northwestern Mutual has helped people achieve the financial flexibility they need to live more and worry less.

Being a mutual company means

Northwestern Mutual reports to its clients, not Wall Street. They don’t believe in chasing fads or taking undue risk for short-term gains. Instead, they take a long-term approach—both in the way we help people plan to reach their goals, and in the way they do business. This has served their clients (and mine) well through all kinds of economic ups and downs, including wars, recessions, even the recent pandemic. It’s why I’m happy to be part of a company that’s in it for the long-haul and prioritizes clients over profit. To find out more please visit my website at www.northwesternmutual.com/ financial/advisor/sha-grondin or call 512.657.6077

credentialed as NMWMC representatives to provide investment advisory services. NM and its subsidiaries are in Milwaukee, WI. Kelley Sha Grondin uses WealthLink Advisors as a marketing name for doing business as a representative of NM. WealthLink Advisors is not a registered investment adviser, broker dealer, insurance agency or federal savings bank. To view detailed disclosures regarding individual representatives, view their information at shagrondin.nm.com

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