If you or someone you know wishes to make gifts to your minor children, to set up an education fund for their benefit, or to transfer wealth out of your estate to avoid possible death taxes (among many other reasons), you should consider establishing a Heritage Trust for your child’s or children’s benefit.
Using a Heritage Trust is a great way to take advantage of your annual $14,000 gift tax exclusion. This means that everyone may gift up to $14,000 per child every year without incurring gift tax liability. For example, a married couple may each gift $14,000 per child, totaling $28,000, each year, per child. Other family members may also gift to the same Heritage Trust for your child’s benefit.
As the creator of the Heritage Trust, you may decide who will act as the Trustee, or in other words, who will administer the trust for your child’s benefit. You may even name yourself as the Trustee. You may also designate a certain age at which point your child may be the Trustee of his or her own Heritage Trust.
Gifting money to a Heritage Trust does not mean your child must wait until a certain age to benefit from that money (as opposed to a commonly used 529 Plan). Instead, the Trustee may distribute the money to your child for his or her health, education, maintenance, or support. Your child needs only to ask the Trustee for assistance, and your Trustee has the discretion to say if and how much money to distribute.
Some of the benefits of a Heritage Trust include:
For more information about Heritage Trusts, please click here to select a seminar to attend and register today!
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Vacek, Thain & Lessard, PLLC serves Texas families with their estate planning, estate tax planning, charitable planning, revocable living trusts, irrevocable trusts, Heritage trusts, wills, power of attorney, family limited partnerships, advanced asset protection planning, declaration of guardian for minor children, healthcare documents, will based estate planning and the hazards of will planning, special needs estate planning, estate administration and trust administration. Contact Vacek, Thain & Lessard, PLLC if you or your loved ones reside in the Houston, Texas area, including: Katy, Cinco Ranch, Mission Bend, Pecan Grove, Richmond, Rosenberg, Greatwood, Sugar Land, Meadows Place, Bellaire, Fresno, Pearland, South Houston, Spring Valley Village, Pasadena, Clear Lake, Friendswood, and more!
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