Legacy planning is an important part of estate planning.
Do you want to live your life with purpose?
Do you want to make a difference?
Perhaps you want to leave a legacy.
Perhaps you want that legacy to continue to be purpose-driven, too?
According to a recent Forbes article titled “Why You Should Consider Using a 'Purpose' Trust for Your Legacy Plan,” your estate planning can help you leave a legacy.
One way is through a “purpose” trust.
What does a purpose trust do?
A purpose trust is created to fulfill a specific, valid purpose rather than to merely work for the benefit of individual beneficiaries.
A few specific goals they may be designed to accomplish are ensuring perpetual existence, separating control of the legacy assets from the beneficiaries, and separating asset principal from the generated revenue of the assets.
To do this well often requires a multi-tiered structure for the trust.
You can provide for the benefit of your family for generations, but not involve them in the management of the legacy assets.
A purpose trust also provides greater protections for the trustee.
The fiduciary duty is not to the beneficiaries.
Because there are no beneficiaries.
The trustee is then simply focused on carrying out your wishes.
A purpose trust may or may not be an option for you.
Not all states allow these.
However, states now allow for perpetual trusts.
What are these?
These trusts have the ability to last forever.
If you are interested in creating a legacy with your estate plan, you should work with an experienced estate planning attorney.
He or she will be able to help you create a plan in alignment with the laws of our state.
So, how do you find an "experienced" estate planning attorney?
First, ask around. Friends, family and other professional advisors are trustworthy sources.
Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").
Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.
In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Forbes (May 14, 2018) “Why You Should Consider Using A 'Purpose' Trust For Your Legacy Plan”