Spendthrift Trust Grow Wealth

Everyone wants to protect and keep more of their hard-earned money! And we can help

A Spendthrift Trust provides the safest road to freedom permitted by law. It provides the ultimate in tax immunity, ironclad asset protection and the best way to acquire asset invisibility or privacy. When a person correctly transfers assets into a properly structured Spendthrift Trust , he or she can maintain 100% control of, and have all the benefits of ownership without any inherent liabilities. Those liabilities are bankruptcy, divorce, lawsuits, liens, levies, or death, etc.

What can a Spendthrift Trust do for you?

Protection of Assets

The beneficiaries only own the assets in the trust if they are transferred to them by title or deed by the trustee. But, until that happens, they own nothing in the trust. They do however have rights to the benefits, proceeds and profits of the assets or properties, if the trustee allows it. One thing to remember is that the trustee is responsible for all the assets, and this is a spendthrift trust, meaning the beneficiaries only are allowed what is “given to them”, and it’s at the complete discretion of the trustee. So, when the trustee allows this access, it is called “beneficial interest”. This beneficial interest is contractually non-assignable interest, and it’s for that reason specifically that any creditor of the beneficiaries may never legally attach trust assets to a debt obligation of the beneficiary. Also, assets conveyed into a trust is never a “gift” to the trust. Because the assets in our trust hold no “equitable title”.

Build Generational Wealth

A Trust is a superb legal avenue to pass assets down from one generation to the next. You don’t have to look further than Rupert Murdoch or Donald Trump to see how wealth can trickle down and set up future generation for success. Assets that may be included in a Trust are bank accounts, precious metals, digital currency, real estate, stock market investments, annuities, a business asset, or anything else which has a monetary value.

Beneficiaries who receive generational wealth start off with a substantial financial advantage over those who do not. This will help them avoid costly debt and instead begin on solid financial foundation.

Tax Planning

Tax planning, done properly, is act of creating a proper tax structure for someone before they begin to create taxable events. It is also the ongoing act of reducing taxes as much as possible to allow the person to keep the most amount of income possible as they navigate the legalities of the tax code. Proper tax planning always takes the path of least resistance with probability of maximum gain. More specifically, tax planning refers to the ongoing analyzing of one’s tax profile at the current time and as income variables change and creating actionable steps to reduce the overall tax burden. A thorough tax plan reduces current and future tax liability, allowing them to meet their financial goals.

The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency. Tax planning is a significant component of a financial plan. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success.

How is the Spendthrift Trust able to do this?

The Spendthrift Trust uses five strong legal pillars that make it an effective tool:

Spendthrift

Complex

In order to serve the beneficiaries of the Trust and protect the Corpus, the Trust is Complex in nature, however the Spendthrift Trust plainly states terms and conditions to make it easier to understand and use.

Discretionary

The Spendthrift Trust ensures that absolute and sole discretionary power of the Trustee and Compliance Overseer in determining the distribution of the Corpus assets to the beneficiaries.

Non-Grantor

The creator of a Spendthrift Trust has no management of the corpus and is not a beneficiary. This keeps the Trust from becoming a living Trust which would have no tax advantages or asset protection.

Irrevocable

Assets are irrevocably transferred to Trust and cannot revert to the one who is making the transfer to the Trust. This protects its tax deferring nature.

“I will not use anyone else”

“Nexxess is extremely knowledgeable about all aspects of a Spendthrift Trust and they are wonderful to work with. They answer all my Trust questions with thoroughness and each year provide a set of financials and accurately file my Trust tax returns.”

Bianca Shaw

Nexxess Client

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