While trusts may minimize liabilities that could compromise trust assets for beneficiaries, the party responsible for administering the trust carries their own risks. Trustees bear tremendous personal liability.
Trusts may be known for their tax advantages, but these tools have benefits beyond tax savings. As discussions about federal estate tax adjustments continue, use of a trust to minimize the impact of the estate tax may not be as valuable as it was in the past. However, effective wealth planning and asset management comprises more than merely tax issues.
Last year, the DOL issued a new rule regarding fiduciaries of retirement accounts that will start to apply to providers in less than five months. Now financial service providers are implementing changes to ensure future compliance.