Estate Planning – Effectively using Testamentary Trusts

Question

A client is in his 50s and is looking to purchase an investment portfolio which he intends to pass down to his children after he dies.  He is looking for a suitable estate planning structure.  What is our recommendation?

Answer

An Inter Vivos Bloodline™ Trust is a special form of discretionary trust. Income generated from assets acquired using the Bloodline™ Trust can be distributed to a wide range of beneficiaries at the discretion of the trustee. However, the capital in the assets is held for the exclusive benefit of your children and grandchildren (your bloodline) consistent with the client's estate planning objective, to pass assets for the benefit of children and grandchildren.  In that light, the Bloodline™ Trust is the preferred form of trust for estate planning.  An added benefit is that as the beneficiaries do not have ownership in the assets until such time as they are so vested, the assets are sheltered from the effects of divorce, bankruptcy or pursuit by creditors.