Trusts
Trusts are one of the most powerful and flexible arrangements you can use to protect your family from the unpredictable changes of life. More than any other financial arrangement, trusts increase the probability that your personal and financial goals are reached.
Trusts help in the following way:
- Preserve control over disposition of assets
- Maximize effective tax planning
- Protect you and your family from lawsuits – frivolous or otherwise
- Flexible to changing family needs
Alaska’s trust-friendly laws provide for more estate planning options than any other state and are a safe and secure alternative to offshore trusts and banking.
More Information About Special Needs Trustsservices
PERPETUAL (DYNASTY) TRUSTS
A perpetual (dynasty) trust is one of the most powerful tools in preserving family wealth. Dynasty trusts can last for as long as the family desires, and theoretically could last forever. If properly structured, it will be exempt from estate and generation-skipping transfer taxes for as long as the trust lasts. Due to the transfer tax-free compounding, the trust will accomplish significant wealth accumulation.
| After-Tax Growth | Value of Perpetual Trust After 120 Years |
Value of Property if No Trust |
| 3.00% | 34,710,987 | 2,169,437 |
| 4.00% | 110,662,561 | 6,910,410 |
| 5.00% | 348,911,561 | 21,806,999 |
| 6.00% | 1,088,187,748 | 68,011,734 |
| 7.00% | 3,357,788,383 | 209,861,774 |
| 8.00% | 10,252,992,943 | 640,812,059 |
| 9.00% | 30,987,015,749 | 1,938,688,484 |
| 10.00% | 92,709,068,818 | 5,794,316,801 |
SELF-SETTLED SPENDTHRIFT TRUSTS
This type of trust allows you to remain a potential beneficiary of a trust you created in Alaska without exposing its assets to claims of your creditors or those of other beneficiaries. It also can provide significant tax savings.
“OPT-IN” COMMUNITY PROPERTY TRUSTS
Alaska is the only state that permits couples, whether or not they reside in Alaska, to choose a community property regime for the ownership of some or all of their assets which, for many, may produce income tax and estate tax advantages.
LIFE INSURANCE TRUSTS
Provides the most effective method to leave life insurance proceeds to beneficiaries gift and estate tax free.
CHARITABLE TRUSTS
Trusts that can be established to transfer assets to children or grandchildren at a greatly reduced gift and estate tax cost. Can also be used to gift assets to charity to receive a current income tax charitable deduction.
GRANTOR-RETAINED ANNUITY TRUSTS (GRATs)
Grantor-retained annuity trusts (GRATs) allow large financial gifts to family members at reduced estate and gift tax costs.
