Ferguson Cohen LLPFerguson Cohen LLP2026-07-01T12:15:04Zhttps://www.fahwlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1401634/2021/01/cropped-ferguson-site-icon-32x32.pngOn Behalf of Ferguson Cohen LLP<![CDATA[3 times to revisit your asset plan]]>https://www.fahwlaw.com/?p=495462026-07-01T12:15:04Z2026-07-01T12:15:04ZAn asset transfer strategy helps you decide how property and other valuables should move to the right people at the right time. It can include real estate, business interests, savings, family heirlooms and other important assets.
However, a plan that worked years ago may not fit your life today. Updating your strategy helps reduce confusion and keeps your wishes clear.
1. When Life Changes The Plan
Major life events are a strong reason to review your asset transfer strategy. Marriage, divorce, the birth of a child or the death of a loved one can change who should receive certain assets.You may also need updates after moving to a new state or buying property. Each change can affect how your plan works and whether it still reflects your wishes.
2. When Your Money Looks Different
Your strategy should match your current financial picture. If you start a business, sell property, receive an inheritance or grow your savings, your old plan may no longer be enough.Debt and ownership changes can also affect asset transfers. Reviewing your plan helps you see whether your assets are protected and properly directed.
3. When Family Needs Shift
Families do not stay the same forever. A child may become an adult, a loved one may develop needs or a family relationship may change. These situations can affect timing and responsibility.You may also want to name a different person to manage certain assets. Choosing the right person can help prevent stress and disputes later.Your asset transfer strategy should grow with your life. A regular review can help you avoid outdated decisions and keep your wishes clear. When questions come up about timing, taxes or family needs, legal guidance can help you make careful choices without feeling rushed.]]>On Behalf of Ferguson Cohen LLP<![CDATA[A special needs trust can preserve benefits]]>https://www.fahwlaw.com/?p=495442026-06-19T18:29:09Z2026-06-19T18:29:09ZAs you work on drafting your estate plan, if you have a beneficiary with special needs, you may consider putting their inheritance into a trust. You can still list them as the beneficiary, but you put a trustee in charge of making distributions, and it is the trust that owns the assets rather than the individual themselves.
One of the benefits of using a special needs trust is that it can help someone maintain benefits that they are already receiving. In this way, you avoid any unintentional consequences that could come with giving them a direct inheritance.
Passing a means test to qualify for benefits
In many cases, when someone applies for benefits, they have to disclose their income and any assets that they own. This is a means test, and the government is essentially just checking to see if they actually need to receive the benefits or not. If they report that they have a low or nonexistent income and a low level of assets, then they will qualify.This is when a direct inheritance becomes problematic, however. It could raise their net worth high enough that they are disqualified from those benefits. They then have to spend down the entire inheritance, reapply for the benefits and hope that they are approved a second time.But if you put the money into a special needs trust, because the individual does not own the assets directly, they still qualify for benefits. You do not have to worry about disrupting this support or forcing them to apply again.This is just one important area to think about when making an estate plan, and it helps to show why it is so important to know what legal options you have.
]]>On Behalf of Ferguson Cohen LLP<![CDATA[Certain trusts can benefit one’s favorite charities]]>https://www.fahwlaw.com/?p=495422026-06-08T02:44:08Z2026-06-08T02:44:08ZCreating an estate plan requires the creator to evaluate their wishes so they can get it put on paper in a legally enforceable manner. Charitable goals can be an important part of an estate plan for people who want to support their favorite causes, organizations, religious groups or other programs.
A comprehensive estate plan can identify which charities should have the benefit of the assets. Using charitable trusts can set a specific plan in place that makes the creator’s wishes easy to follow. A charitable trust combines charitable giving with broader estate planning goals. Instead of just making a single gift outright, a charitable trust sets a structured arrangement that controls how the assets are managed, who will receive the benefits, and when the charity receives its portion. Two types of charitable trusts can be used.
Charitable lead trusts
Charitable lead trusts provide payments for a set number of years or a defined period. Once that period ends, the remaining assets pass to the other named beneficiaries. This type of trust allows the creator to support the charity soon after their death, with the possibility of providing for their loved ones after the charity.
Charitable remainder trusts
Charitable remainder trusts work in the opposite way. They provide for the beneficiaries of the creator for a defined period. Once that period is over, the remaining assets in the trust will pass along to the named charities. Evaluating charitable trusts is an important part of the estate planning process. It’s critical for anyone considering this to work with someone who’s familiar with their wishes and who can assist with getting everything set up properly. ]]>On Behalf of Ferguson Cohen LLP<![CDATA[4 critical trusts high-net-worth Connecticut families should have]]>https://www.fahwlaw.com/?p=495392026-06-01T15:46:28Z2026-06-01T15:46:28ZMany families assume estate planning only matters after they are gone. But the most powerful wealth-preservation decisions actually happen during your lifetime, not after.
In Connecticut, delaying asset structuring leads to missed opportunities and costly tax exposure. Fortunately, four key trusts can help your wealth work for your family today while securing their financial future tomorrow.
Strategic planning keeps more wealth in your family
A strong estate plan does far more than determine who inherits your assets. It actively minimizes taxes, protects your property from legal threats and safeguards your income for the people who matter most. This is how trusts fit naturally into this strategy. They let you control how and when your assets transfer to loved ones, all while shielding more of your wealth from unnecessary taxation. With the right plan in place, you give your family both financial security and peace of mind.
Four trusts that can protect your family’s future
Knowing why trusts matter is only the first step. The next step is choosing the right ones for your family. Here are four trusts that Connecticut families with significant assets should consider:
Irrevocable Life Insurance Trust (ILIT): This trust holds your life insurance policy outside your taxable estate. Your beneficiaries receive the full death benefit without estate tax reducing their payout.
Grantor-Retained Annuity Trust (GRAT): A GRAT lets you fund the trust with high-growth assets while collecting scheduled annuity payments over a defined term. Once that term concludes, whatever remains in the trust passes to your beneficiaries, typically with little to no gift tax.
Spousal Lifetime Access Trust (SLAT): One spouse creates this trust for the benefit of the other, removing assets from both spouses' taxable estates. It also preserves access to those funds when your family needs them.
Qualified Personal Residence Trust (QPRT): This trust transfers your home or vacation property out of your taxable estate. Doing so can significantly reduce the estate taxes your heirs would otherwise face.
Together, these four trusts form a strong foundation for protecting what you have built. Each one addresses a specific area of your estate and combining them can multiply the benefits for your family.
Give your heirs the full benefit of your legacy
Your family's financial future is too important to leave to chance. The wealth you have built over a lifetime deserves a plan that protects every dollar of it. Structuring your estate with the right trusts means your beneficiaries keep more of what you intended for them and far less goes toward unnecessary taxes. The sooner you put these protections in place, the more your family stands to gain for generations to come.]]>On Behalf of Ferguson Cohen LLP<![CDATA[What happens when a trustee position becomes vacant?]]>https://www.fahwlaw.com/?p=495372026-05-26T05:35:43Z2026-05-26T05:35:43ZYou don’t create a trust for short-term convenience; you create it for long-term stability. You expect the trustee you name to serve for many years, providing consistent, reliable oversight of assets. However, even the most carefully drafted trust is not immune to change.
Over time, a trustee may step down, become unable to serve or simply no longer be the right fit. In such scenarios, the trust doesn’t simply cease to exist, but the transition is not always smooth. What follows depends on how the trust was drafted and whether a clear succession plan is already in place.
How a trustee vacancy is handled in Connecticut
Most trusts include provisions explaining who should step in as a successor trustee or how they should be appointed. If the trust names a backup trustee, they can typically step into the role without court involvement. The successor trustee then assumes the legal duty to manage trust assets in accordance with the terms of the trust and Connecticut law.If the trust doesn't address trustee succession or fails to name a backup, the court may have to appoint a new trustee. Beneficiaries may also petition for this appointment, andthe court will consider who can best serve the interests of the trust and its beneficiaries.
It doesn’t have to become a crisis
A trustee vacancy is one of the most important contingencies to plan for. If there’s no clear succession plan in place, a vacant trustee position can create real disruptions. Assets may sit unmanaged, beneficiaries may go without distributions and disputes can arise quickly.Seeking professional legal guidance when creating a trust can help you address succession gaps before they become real problems down the road. It can be imperative in ensuring the trust continues to operate smoothly even when a trustee can no longer serve, preserving both your intentions and your loved ones’ financial interests.]]>On Behalf of Ferguson Cohen LLP<![CDATA[4 pitfalls to avoid when establishing a special needs trust]]>https://www.fahwlaw.com/?p=495352026-05-12T16:47:12Z2026-05-12T16:47:12ZA special needs trust (SNT) can provide meaningful financial security for a loved one with a disability but only if it's done right. The details matter far more than most people initially realize, and even small missteps can create ripple effects that may be difficult to undo.
Here are some common mistakes that can undermine everything you’ve worked toward when creating a special needs trust.
1. Improperly funding the trust
A trust is only effective as the way it’s funded, and SNTs are no different. You must transfer assets into the special needs trust the right way to achieve your objectives. Assets improperly transferred to the SNT are not governed or protected by the trust, which can lead to unintended outcomes when the time comes.
2. Naming the wrong trustee
Trustees are responsible for more than paying bills or writing checks, which is why you need to make the right choice. A well-meaning family member or close friend isn’t always the right choice to manage an SNT. The trustee must understand both their legal obligations and the complex rules governing these kinds of trusts. Without an understanding of the role, even routine decisions can compromise the protections the trust is designed to provide.
3. Using vague or incomplete trust language
Generic trust language is a trap when it comes to SNTs. The trust must be carefully drafted to clarify permissible distributions, successor trustee instructions and what happens to remaining assets. Ambiguity can lead to unnecessary disputes or even jeopardize your beneficiary's eligibility for government programs.
4. Failing to update the trust
An SNT drafted years ago may no longer align with the current laws or your family’s present situation. For instance, updates in Medicaid policy, SSI eligibility rules or trust administration practices can change how distributions are treated or how trustees are expected to manage funds. Periodic reviews help ensure the trust stays legally sound and practically effective.Whether you are establishing a new special needs trust or reviewing an existing one, seeking professional legal guidance can help you get it right and preserve your loved one’s stability, security and peace of mind even when you’re no longer around.
]]>On Behalf of Ferguson Cohen LLP<![CDATA[What you need to know before setting up an irrevocable trust]]>https://www.fahwlaw.com/?p=495302026-05-01T18:39:14Z2026-05-01T18:39:14ZAn irrevocable trust is not something you set up and revisit when circumstances change, as you can do with a revocable trust. Once assets are transferred into an irrevocable trust, you typically cannot reclaim them or modify the trust terms without court involvement or beneficiary consent.
Additionally, you surrender legal ownership and control of the assets in an irrevocable trust. In other words, you’re no longer considered the legal owner. The assets will belong to the trust, which means you can’t sell or transfer them to third parties. This loss of flexibility underscores the importance of foresight if you’re considering this kind of trust.
Choosing the right trustee is a decision of consequence
Since you cannot serve as the sole trustee of your own irrevocable trust and retain its legal benefits, your choice of trustee demands careful deliberation. Whether you appoint a trusted family member, a corporate fiduciary or an independent professional, this individual or institution will hold considerable authority over trust administration, distribution decisions and long-term asset management.
Funding the trust is as critical as creating it
Asset transfers to the trust must be done right to realize the full benefits of an irrevocable trust. This may involve retitling assets, updating ownership records and ensuring that each transfer complies with applicable legal and tax requirements. Improper titling or incomplete transfers can compromise the integrity of the trust and undermine its intended protections.
Take informed action
Irrevocable trusts can deliver meaningful tax advantages, including reducing estate tax exposure and removing future asset appreciation from your taxable estate. However, these benefits depend on precise structuring, funding and timing. Even slight missteps may trigger unintended tax consequences or negate efficiencies altogether. Given the complexity of Connecticut and federal tax considerations, securing professional legal guidance is essential to ensure your trust operates as intended and fully supports your long-term estate planning objectives.]]>On Behalf of Ferguson Cohen LLP<![CDATA[4 ways charitable giving can reduce estate taxes]]>https://www.fahwlaw.com/?p=495182026-04-13T11:19:42Z2026-04-13T11:12:03ZCharitable bequests
A charitable bequest is a gift you leave to charity after you pass. This is allocated through a will or revocable trust. The amount qualifies for the estate tax charitable deduction, removing it from your taxable estate.
You may structure the gift as a specific dollar amount, a percentage of your estate or even a "tax clause" gift that adjusts based on tax liability.
Lifetime charitable gifts
Rather than waiting until your passing, you can begin donating cash or property to charity.
This strategy offers two important benefits. First, you may qualify for an immediate income tax deduction. Second, the asset will not be included in your taxable estate. This includes any future growth in value.
Beneficiary designations for charities
Besides giving gifts, you can name a qualified charity as the beneficiary of certain assets. These assets include retirement accounts, such as IRAs or 401(k)s.
When you designate a charity, the portion that goes to the charity generally qualifies for an estate tax charitable deduction. On top of that, these assets bypass probate by transferring directly to the organization.
Charitable trusts
Charitable trusts allow you to support both philanthropic causes and your family’s future. Generally, these trusts fall into two main types:
Charitable Remainder Trust (CRT): This trust provides income to your chosen beneficiaries for a set period. After that period ends, the trust transfers the remaining assets to charity.
Charitable Lead Trust (CLT): This trust makes payments to charity first for a set term. Afterwards, it passes the remaining assets to your heirs.
Both trusts qualify for estate tax deductions. The deduction is based on how much the charity receives. The choice depends on whether you want to prioritize income for your family or charitable giving first.
Leveraging charitable giving in your estate plan
Charitable planning allows you to reduce estate taxes while making a lasting impact on the causes you value most. Depending on your priorities, you may use different tools to balance what you leave to family and what you direct to charity.
Because each method involves different legal and tax requirements, it may be beneficial to create a coordinated plan that matches your long-term legacy goals.]]>On Behalf of Ferguson Cohen LLP<![CDATA[3 ways SLATs can preserve generational wealth for your family]]>https://www.fahwlaw.com/?p=495152026-03-27T09:23:19Z2026-03-30T09:13:34ZYou have worked hard to build wealth that can support your family for generations. Today, both federal and Connecticut estate tax rules can place that legacy at risk.
A spousal lifetime access trust, or SLAT, can help you plan ahead while still allowing indirect access through your spouse. Here are three of the most beneficial ways a SLAT can protect your family’s wealth.
Shift future appreciation outside your taxable estate
You can move high-value assets into a SLAT while values remain favorable. Future growth then occurs outside your taxable estate. This approach can reduce both federal and Connecticut estate tax exposure over time.This matters in Connecticut, where the estate tax threshold is lower than the federal level. Many wealthy families reach this threshold sooner than expected since assets such as real estate and closely held business interests often see strong growth. A SLAT can help you preserve that growth for your children and their families.
Use grantor trust status to manage tax exposure efficiently
A SLAT is often structured as a grantor trust. You remain responsible for income taxes on trust earnings, which allows the trust assets to grow without reduction for taxes.When you pay income taxes on the trust's earnings, you effectively transfer additional wealth to the trust without triggering gift tax, provided you do not receive reimbursement from the trust. In Connecticut, high income tax rates can make this strategy more impactful.However, you must also note that beneficiaries will not receive a step-up in basis at your death for assets held in the SLAT, unlike assets you hold until death.
Strengthen protection against future claims and liabilities
A SLAT can also support asset protection goals. Once you transfer assets to the SLAT, you no longer own them, which means your spouse's creditors generally cannot reach these assets. This is important if you hold business interests or high-value real estate. However, because you retain indirect access through your spouse, the trust offers you limited protection from your own creditors, especially if you transferred assets while facing existing claims or within Connecticut's fraudulent transfer look-back period.
Position your family for long-term control and continuity
A SLAT can help you manage tax exposure, preserve growth and support long-term stability. It also creates a structure that can benefit your children and future generations.Each SLAT must reflect your assets, your family structure and Connecticut law. Legal counsel often helps shape these details and coordinates with your tax advisors. This level of planning can help your strategy remain effective as laws and circumstances evolve.]]>On Behalf of Ferguson Cohen LLP<![CDATA[Will a quiet trust protect your heirs from sudden wealth?]]>https://www.fahwlaw.com/?p=495112026-03-23T16:02:34Z2026-03-23T16:02:34ZNavigating the limits of silent provisions
A quiet trust is a legal tool that limits the information a beneficiary receives for a set time. While some states allow long-term secrecy, Connecticut has strict rules for transparency. Specifically, a trustee must notify beneficiaries that a trust exists once they reach 25 years old.
However, you can still use silent provisions to keep things private during the younger years of a child. To successfully waive notice for beneficiaries under 25, you must appoint a representative to receive legal notices for them. This structure allows your children to focus on their education and early career without the distraction of a known inheritance.
Balancing privacy with legal mandates
Because the duty to report becomes mandatory at 25, the timing of your estate plan is vital. While you cannot legally hide the trust from a 30-year-old beneficiary in Connecticut, you can still control when they actually receive the money.
The law ensures that while a beneficiary is under 25, your chosen representative monitors the trustee to protect the interests of the heir. Consider these benefits of a structured disclosure:
Encouraging heirs to pursue their own goals during their early 20s
Protecting young beneficiaries from outside pressure or influence
Using the years leading up to 25 to teach financial responsibility
Ensuring a representative provides oversight while the beneficiary is young
These arrangements work best as part of a broader plan for asset transfer. Understanding these mandatory rules is essential for any family seeking to balance privacy with state compliance.
Planning for a compliant transition
Connecticut age rules mean that secrecy has a legal expiration date. A quiet trust offers a window of privacy that protects your children during their youth, but it requires a plan for when they reach adulthood.
An attorney who understands these disclosure rules can help you draft a plan that respects both family privacy and state law. Clear legal guidance ensures that your legacy remains a source of support rather than a legal complication for your heirs.
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