Barron’s: Using Trust to Navigate Today’s Markets

October 28, 2019

Trust services as a tool amid uncertainty and low interest rates

“Advisors can use the current environment’s backdrop as an opportunity to build trust, check in, review financial plans and adjust accordingly.”

As uncertainty remains in the markets, Dean Mioli, Head of Investment Planning at Independent Advisor Solutions by SEI, authors a piece exploring how advisors can leverage trust services to add value with clients. Specifically, Dean highlights the low-interest rate environment as a potentially favorable backdrop for grantor retained annuity trusts (GRATs) and charitable lead trusts (CLTs).

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Legal Note

Independent Advisor Solutions is a strategic business unit of SEI Investments Company (SEI).
This material represents an assessment of the environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is for educational purposes only and should not be interpreted as legal opinion or advice. Neither SEI nor its affiliates provide estate planning or tax advice. You should seek advice based on your particular circumstances from your legal and tax professionals.
Neither SEI nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.
A GRAT is a financial instrument used in estate planning to help minimize taxes on large financial gifts to family members. Under these plans, an irrevocable trust (the terms cannot be modified, amended or terminated without the beneficiary's permission) is created for a certain term or period of time. The individual establishing the trust pays a tax when the trust is established.
A CLT is an irrevocable trust designed to provide financial support to one or more charities for a period of time, with the remaining assets eventually going to a family member or beneficiary. A CLT requires the charitable payment to be made each year, regardless of whether there is sufficient trust income available.