Trusts—Fulfilling a Role in Your Financial Plan

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Many people have heard about trusts, but may not know there are several kinds of trusts, and which, if any, of these legal documents may be of value to them for their personal financial planning. It might be time to ask yourself, “Would a trust help me accomplish an important financial or estate planning objective?” Trusts can be established to address a variety of concerns, including protecting and distributing your assets, managing taxes and achieving your charitable goals. The assets in a trust are managed according to your wishes by the trustee you choose.

Not Just for the Wealthy

Trusts are very flexible arrangements offering many different planning options that are tailored to fit your situation. Here are some ways a trust can be used for your benefit or the benefit of others. You can establish a trust to:

Manage the distribution of assets to beneficiaries based on criteria you establish
Manage assets and provide recordkeeping for financially inexperienced beneficiaries
Provide for management of your financial affairs if you become ill or incapacitated
Protect the financial interests of your children from a previous marriage
Secure funds to provide for special needs dependents, including disabled
children, elderly parents or other relatives
Minimize exposure to estate taxes and/or probate costs
Benefit a charity while still providing for loved ones
Keep the affairs of a business private and help to preserve it for family members

A Helping Hand

If you do decide to establish a trust, make sure you have confidence in a potential trustee’s ability to properly manage your affairs before you make a selection. You might want to consider naming an institution as trustee or cotrustee to provide professional management services and an objective, seasoned perspective. Your financial advisor can refer you to an estate planning attorney who is experienced in creating the legal documents you need.

Speak to your advisor to discuss how a trust might fit into your overall financial plan.

This is for informational purposes only and not intended to provide legal or tax advice. For legal or tax advice, please contact your attorney or tax professional.

What Does the SEC Mean to Main Street Investors?

The Securities and Exchange Commission (SEC) is a U.S. government oversight organization charged with overseeing and enforcing our nation’s federal securities laws. Founded at the peak of the Great Depression and after the passing of the Securities Exchange Act of 1934, the agency’s mission consists of three primary objectives:

Protecting Main Street investors who depend upon the nation’s financial markets to help create their financial wellness and future financial security

Read more about What Does the SEC Mean to Main Street Investors?

Forget the Scale — Resolve to Boost Your Retirement Savings in the New Year

By Nikki Young, CFP^®
Northwest Financial Advisors

Many of us vow to lose weight and get in better physical shape in the new year. And unfortunately, many of us fail. Instead of spending money on an expensive gym membership or fancy workout gear, consider putting that money toward your retirement nest egg next year.

Increasing your retirement savings may not be as hard as you think. And it sure beats dieting! Here are some tips to help you get started — or restarted — on your retirement savings.