Ferguson Cohen LLPFerguson Cohen LLP2026-09-30T21:15:38Zhttps://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[4 types of trusts to include in your Connecticut estate plan]]>https://www.fahwlaw.com/?p=495702026-09-29T13:04:46Z2026-09-29T13:04:46ZEstate planning is about more than deciding who inherits your assets. It is about protecting what you have built and making sure your wealth reaches the right hands with as little loss as possible. For Connecticut families, trusts can reduce estate taxes, shield assets from creditors and provide lasting financial security. In fact, these four trust types below stand out as particularly useful for high-net-worth families.
Keep life insurance out of your taxable estate
To start, consider the Irrevocable Life Insurance Trust (ILIT). This trust owns and manages a life insurance policy outside your personal estate, keeping death benefits away from estate taxes and shielding policy proceeds from creditors. However, once you finalize the trust, you cannot modify, cancel or reclaim the policy. Beyond life insurance, you may also want to protect assets directly for your spouse.
Give your spouse financial access while reducing taxes
That is where a Spousal Lifetime Access Trust (SLAT) comes in. This irrevocable trust places assets for your spouse's benefit while removing them from your taxable estate. Your spouse retains access to funds when financial needs arise. However, access ends if your spouse passes away or the marriage ends and the IRS will invalidate identical trusts that spouses create for each other. Meanwhile, for families with fast-growing investments, another option offers even more value.
Move high-growth assets to heirs with less tax
In that case, a Grantor Retained Annuity Trust (GRAT) may be worth exploring. This trust transfers high-growth assets to your heirs while reducing gift and estate taxes. It works by giving you annual payouts based on the original asset value plus an IRS-set interest rate. Any growth beyond that rate passes to your beneficiaries tax-free. However, if you pass away before the trust term ends, the assets return to your estate.
Lower your home’s value in your taxable estate
A similar approach can also apply to your home. A Qualified Personal Residence Trust (QPRT) lets you transfer your home out of your estate while you continue living in it for a fixed term of 5, 10 or 15 years. During that period, you live there completely rent-free. Once the term ends, all future appreciation passes to your heirs free of estate taxes. If you choose to stay beyond that point, you simply pay fair market rent to your beneficiaries.
Take the next step in protecting your legacy
Together, these four trusts can form the foundation of a stronger, more comprehensive estate plan. Each option serves a different purpose and the right combination depends on your unique financial situation and family goals. Taking the time to understand how each one works, including its benefits and limitations, puts you in a far better position to make confident decisions. With the right guidance and a well-structured plan, you can protect your wealth, provide for your loved ones, and preserve your legacy for generations to come.]]>On Behalf of Ferguson Cohen LLP<![CDATA[Will a special needs trust expire?]]>https://www.fahwlaw.com/?p=495652026-09-21T16:39:57Z2026-09-21T16:39:57ZGenerally speaking, a special needs trust is going to be set up to last indefinitely. The trust may be in place until the beneficiary passes away.With a third-party special needs trust, the beneficiary does not own the assets. They are transferred into the trust by someone else, and so there is no government payback requirement when that person passes away.With a first-party special needs trust, the beneficiary may own those assets first. The assets are then taken from their personal estate and put into the trust, which can help protect government benefits. However, some level of reimbursement may be necessary when the beneficiary does pass away. In both cases, that is when the trust expires.
Could there be an expiration date?
Rather than setting up an expiration date, the other way that a special needs trust typically ends prior to the beneficiary’s passing is simply if it runs out of funds.For instance, there are cases where a large inheritance is being placed into an SNT, and it is going to last for the rest of the beneficiary’s life. The trustee will have to address what is to be done with the funds once the beneficiary has passed away and no longer needs them.But in other cases, the inheritance could be much smaller. The trust is being used to preserve government benefits. However, the funds may become depleted after just a few years, ending the trust, even though the beneficiary is still alive.It is important to consider all of these different factors when establishing a trust, and trustees who have been assigned to them need to know exactly what steps to take. It can help to work with an experienced attorney through these various stages.
]]>On Behalf of Ferguson Cohen LLP<![CDATA[What to know about multi‑generational asset transfers]]>https://www.fahwlaw.com/?p=495612026-09-10T00:30:41Z2026-09-10T00:30:41Zstate estate tax threshold aligns with the federal exemption at $15 million, Connecticut law lacks spousal portability. Prioritizing a structured approach preserves value for children and grandchildren.
Building a tiered transfer structure
A tiered structure allows assets to move through generations without eroding their value over time due to taxes. Long‑term trusts can hold appreciating assets and apply generation‑skipping transfer allocations in a deliberate order. Steps to take include:
Identifying long‑term goals such as education funding, business continuity and property retention
Selecting appropriate trust vehicles that match those goals and support multi‑stage distributions
Coordinating fiduciary roles to ensure consistent oversight across decades.
Tiered plans work best when each step supports the next generation without creating avoidable tax exposure.
Managing estate tax impact over time
Proper sequencing of asset transfers helps reduce the combined effect of federal and state estate taxes by spreading them across several stages. Here are some tips to follow:
Review exemption levels at the state and federal level each year.
Shift appreciating assets early to reduce future taxable value.
Use valuation strategies when transferring interests in closely held entities.
Multi‑generational plans must address both family dynamics and asset characteristics. Illiquid assets, such as real estate or business interests, often require careful equalization strategies. However, families can plan for uneven asset types by pairing illiquid holdings with offsetting distributions. A balanced approach with knowledgeable guidance helps ensure each generation receives value while supporting stability and long‑term planning.]]>On Behalf of Ferguson Cohen LLP<![CDATA[Does a trustee determine how assets can be utilized?]]>https://www.fahwlaw.com/?p=495592026-08-20T14:45:06Z2026-08-20T14:45:06ZIf you would like to have more control over your estate, even after you pass away, one potential asset transfer strategy is to use a trust. You can name a beneficiary, who is the intended recipient of those funds. But you also put a trustee in charge, and they are the one who is allowed to access the trust. The beneficiary cannot access it on their own.
In some cases, this does mean that the trustee can determine how those assets can be spent or used. For instance, with a discretionary trust, the trustee just gets to use their best judgment. This is sometimes used when the beneficiary is very young, and you want to appoint an older and wiser person to assist them with spending and ensure that they actually use the money in a way that is in their best interests.
You can give the trustee instructions
But you do not have to leave all of the decisions up to the trustee. You can also leave them direct instructions.In some cases, people will choose a specific goal for the trust. Maybe it has been established so that the beneficiary will not have to worry about the rising costs of college tuition. The trustee is authorized to pay for educational costs until graduation, when the beneficiary gets access to the rest of the funds.In other cases, people will focus on a certain age. The trustee may be instructed to release the funds to the beneficiary only when they turn 25 or 30 years old, for instance.Exactly how you want to structure a trust is up to you and depends on what you believe will be best for your family. But this helps to show some of the options that you have, the power that you are giving the trustee and the importance of understanding all of your legal options while setting up your estate planning documentation.
]]>On Behalf of Ferguson Cohen LLP<![CDATA[Can you put physical property into a trust?]]>https://www.fahwlaw.com/?p=495572026-08-06T18:57:52Z2026-08-06T18:57:52Ztransfer the asset into the trust.
A quitclaim deed
For example, with real estate, a quitclaim deed may be necessary. This has to be appropriately filed with the county clerk. Related documentation includes a certificate of trust, a memorandum of trust and a copy of the trust documentation itself. If there is a mortgage or the real estate is in an homeowners’ association, permission may be needed from the HOA or the mortgage lender.
A title transfer
With a vehicle, transferring the title into a trust often means retitling it. This can cause it to transfer immediately into the living trust. The trust becomes the owner of the vehicle, rather than the individual.
Another option is simply to make the beneficiary the trust itself. The estate plan stipulates that the vehicle should be passed to that beneficiary, and so the trust takes possession when the original grantor passes away.
These are other ways in which physical property can be put into a trust, which can sometimes aid with estate administration. Those who are interested in doing so need to know what legal steps they need to take.]]>On Behalf of Ferguson Cohen LLP<![CDATA[What is a trustee?]]>https://www.fahwlaw.com/?p=495552026-07-23T06:58:03Z2026-07-23T06:58:03ZA trust is a legal arrangement that allows you to distribute trust funds and assets to beneficiaries. Additionally, you can use a trust to protect assets from disputes between family members, probate delays and debt collection. When drafting a trust, one of the most important decisions is naming a trustee.
Assets that are part of the trust are the responsibility of the trustee. A trustee holds a legal title to assets in a trust. They are legally obligated to fulfill the intent of the trust on behalf of the grantor. Who you pick to be a trustee must have the best interests of the trust and your beneficiaries. There are several considerations to make when appointing a trustee. Here is what you should know:
How do you pick a trustee?
You can name a family member or friend to manage your trust. Someone close to you is likely to understand the intent of your trust. They may also know your beneficiaries personally. However, having a loved one as your trustee is not always as simple. The role of trustee often requires a deep understanding of the fiduciary obligation that comes with managing a trust. They also must be ready to take on a great financial burden and understand the time commitment and trustworthiness that comes with the role. It can help to talk to a potential trustee to help them understand what duties they are expected to fulfill. Here are some topics to discuss:
Record keeping: A trustee must be prepared to record all changes to the trust, prepare records and statements and potentially prepare the trust for future generations.
Communicate with beneficiaries: A trustee must keep beneficiaries informed about any changes to the trust that could impact them.
Administer assets: A trustee must know how to distribute trust funds and assets to beneficiaries according to the terms of the trust.
Before picking a trustee, you may need to reach out to professional legal guidance to learn more.]]>On Behalf of Ferguson Cohen LLP<![CDATA[How dynasty trusts preserve wealth for generations]]>https://www.fahwlaw.com/?p=495532026-07-22T14:13:47Z2026-07-22T14:13:47ZWhat is a dynasty trust?
A dynasty trust holds and manages assets for multiple generations of a family. Instead of transferring all assets to one generation, the trust continues to benefit children, grandchildren and later descendants under rules set by the person who creates it.
The term "dynasty trust" often implies a trust designed to last as long as state law permits. Historically, the rule against perpetuities limited trusts to a duration of 21 years after the death of the last beneficiary alive at the time the trust was created. However, because many jurisdictions have since modified or abolished this rule, modern dynasty trusts can be structured to endure for multiple generations.
Families with substantial wealth often use dynasty trusts as part of a long-term estate planning strategy to preserve wealth across multiple generations. The trust document explains when beneficiaries may receive distributions and how the trustee should manage the trust. Understanding these features makes it easier to see why many families choose this planning tool.
How a dynasty trust preserves wealth
A properly structured dynasty trust may help families:
Preserve wealth across multiple generations
Protect trust assets from certain creditor claims against beneficiaries
Provide long-term management of investments and other property
Distribute assets according to clear instructions
Support long-term family financial planning goals
Federal generation-skipping transfer tax rules under 26 U.S.C. § 2601 may allow properly structured trusts to help minimize transfer tax exposure by making efficient use of exemptions and transfer-tax planning rules as wealth passes to future generations. Families often consider these rules when creating a long-term estate plan. Tax planning forms only one part of the overall strategy, so other planning decisions also matter.
Planning for long-term success
A dynasty trust can remain in place for many years. Families should choose a capable trustee, establish clear distribution terms and review how the trust fits their long-term goals. They should also consider how future generations may benefit from the trust while preserving its purpose over time.
Learning how this type of trust works helps families make informed estate planning decisions.You may want to consult a legal professional for guidance.]]>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[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[Choosing the right charity for your charitable remainder trust]]>https://www.fahwlaw.com/?p=495092026-03-16T15:39:20Z2026-03-16T15:39:20ZYou spent decades building wealth. A charitable remainder trust (CRT) puts that wealth to work for a cause you care about while still paying you income. But one decision shapes everything: which charity you name as the final beneficiary. Get it right and your legacy lands exactly where you intend. Get it wrong and the consequences can be hard to undo.
The charity must qualify under federal law
Not every group can serve as a CRT recipient. The charity must be a qualified 501(c)(3) organization, meaning a public charity or private foundation recognized by the IRS. Other types of tax-exempt groups, such as social welfare organizations, do not qualify. Most colleges, hospitals, religious groups and large nonprofits meet this standard. Private foundations can qualify too, but face tighter rules. Before naming any group, confirm its status using the IRS exempt status tool.
Align the charity with your values
A CRT is permanent. Once you fund it, changing the charitable beneficiary can be difficult or impossible depending on how the trust is written. That makes this choice deeply personal. Many Greenwich families pick groups tied to causes close to their hearts. Common picks include medicine, education, the arts and the environment. Think about what you want your legacy to say, not just what feels right today.
Consider the organization's financial health
A charity that struggles financially may not be ready to receive a large gift. Look at its history, its leaders and how it spends its funds. Check its public filings if you can. Groups with strong boards tend to handle large gifts better than small or newer ones.
Name a backup charity
Well-established charities can still merge, close or change course over time. Naming just one group creates risk. Estate planning attorneys often suggest naming a backup charity as well. If the first pick no longer qualifies, the gift can still reach a similar group. That safeguard costs nothing to add but can protect your wishes entirely.
Making your charity choice count
A CRT can last for years or even decades beyond your lifetime. The charity you name today will receive the remainder long after the trust stops paying income. Giving that decision the same care you gave the wealth itself goes a long way toward making sure your legacy holds.]]>