(Coral Gables Trust) Let's talk about an incredible tool in your wealth management arsenal – trusts, specifically for illiquid assets. You're savvy, so you know the value of trusts for liquid assets, but have you considered the distinct advantages of locking your illiquid assets like real estate, alternative limited partnership (LP) and general partnership (GP) interests, private stocks, precious artworks, and more, into a trust?
Stashing illiquid assets in a trust? It's a bit like investing your money in a super-secure, Swiss bank vault that not only keeps your treasures safe but also helps them grow. Imagine your real estate churning out rental income or that private stock investment soaring high, right from within this trusty fortress.
The best part? These assets continue to build up value, setting your beneficiaries up for a prosperous future
Unexpected blows can come from anywhere – lawsuits, creditor claims, financial storms – you name it. With illiquid assets, these strikes can hurt. That's where trusts come in, forming an unyielding barrier against these threats.
The trust – your best clients' financial bodyguard, if you will – takes up the legal ownership of the assets, protecting them and the wealth from whatever curveballs life throws our way.
It's like being a grandmaster in a chess game, planning your moves way ahead. Getting your clients to name their beneficiaries in the trust document lays out a clear succession strategy, preventing potential heir feuds and ensuring a seamless transition of your wealth. Plus, there's a good chance you can reduce those pesky estate taxes.
We live in an age of information overload, where privacy seems like a lost art. Trusts, however, offer that much-coveted sanctuary. Unlike probate proceedings, which can blast your financial affairs on public record, trusts keep things under wraps. It's like having your very own financial Batcave, safeguarding your family's privacy and your wealth's details.
Illiquid assets can be intricate and complex – think of them as high-maintenance pets that need expert care. Partnering with an independent trust company who knows how it works allows an advisor to rope in professional trustees who understand the specific needs of these asset classes. This ensures your best clients' assets are skillfully handled, adding value, and keeping any potential risks or hitches at bay.
In a nutshell, stashing illiquid assets in a trust is a win on so many fronts – wealth preservation and growth, asset protection, seamless estate planning, privacy, and professional management.
As financial advisors, we can't stress enough on asset class diversity.
Utilizing trusts empowers you to safeguard your assets, carve a clear succession strategy, and ensure your loved ones' financial future.
Need to know more about your trust options? We're here to guide you through tailoring the best trust strategy for your financial aspirations and circumstances.
Want to know more about Coral Gables Trust Company? Our Advisor-Friendly Trust Company profile is right HERE.
