Financial Answer Center
Trusts
- Understanding Trusts
- Qualified Personal Residence Trust
- Qualified Terminable Interest Property Trust (QTIP)
- Grantor Retained Annuity Trust
- Wealth Replacement Trust
- Charitable Remainder Trust
- Charitable Lead Trust
- Charitable Gift Annuity
- Glossary
Wealth Replacement Trust
You may be concerned about the financial security of family members and their need for the assets you intend to give to charity. By using a wealth replacement trust (WRT) with a charitable remainder trust (CRT), you can provide for both the charity and your heirs.
The WRT is funded with a new life insurance policy paying the proceeds to the trust on your death. Your heirs are the beneficiaries of the WRT. So, even though you have given money to charity, the amount your heirs receive is not diminished. Also, because the insurance policy is owned by the WRT, the proceeds are not taxable to your estate.Share Article:
Securities and insurance products are offered through Osaic Institutions, INC., Member FINRA/SIPC. Osaic Institutions, INC. and FB Wealth Management, a division of First Bank, are not affiliated. We do not provide tax advice. Consult your tax advisor.