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Using Trusts in Estate Planning: Discover Potential Tools to Help You Plan for the Future

vbeam@fortitudewealthplanners.com (Vicki Beam) — Tue, 07 Apr 2026 11:09:14 GMT

Using Trusts in Estate Planning: Discover Potential Tools to Help You Plan for the Future

As a reminder we have partnered with a network of attorneysand can facilitate crafting a will, trust and estate plan at a lowered ratethat reflects your objectives so you can provide financial support for yourloved ones in the future.

Although we all hope to enjoy many more years with our lovedones, creating an estate plan is essential for every adult, no matter whattheir age. Having a plan in place means your wishes will be followed, both interms of asset distribution and the financial well-being of those you careabout. One key aspect of estate planning is using trusts, which offer a varietyof advantages for individuals and families. In this guide, we’ll cover thefundamentals of using trusts in estate planning, explain the different types,and explore how trusts may play a vital role in your estate planning process.

Trusts 101: A Foundational Understanding

Though a trust can be a complex financial tool, when youdistill it down to the basics, it is a legal arrangement that allows you to setaside assets for the benefit of specific individuals or purposes. At its core,a trust involves three key parties:

Grantor: The person who establishes the trust and contributes assets to it.
Beneficiary: The individual(s) or entity (such as a charity) who will benefit from the trust’s assets.
Trustee: The person or institution responsible for managing the trust and ensuring the assets are distributed according to the trust’s terms.

Types of Trusts

Trusts come in various forms, each designed to servespecific purposes. Here are a few common types you might consider as you thinkabout trusts and estate planning:

Revocable Living Trust

A revocable living trust is established during the grantor’slifetime and can be modified or revoked as needed. It allows assets to avoidprobate, potentially saving time and costs for beneficiaries – both of whichare significant advantages when your loved ones are already facing a difficulttime of grief.

Irrevocable Trust

An irrevocable trust, once established, generally cannot bealtered without the consent of the beneficiaries. This type of trust can offerpotential estate tax benefits and protection from creditors.

Testamentary Trust

Created through a will, a testamentary trust comes intoeffect after the grantor’s death. It can be used to provide for minor childrenor individuals with special needs.

Special Needs Trust

If one or more of your loved ones have special needs, youmight also consider a special needs trust (SNT). This is a trust designed toprovide for the long-term care of individuals with disabilities withoutjeopardizing their eligibility for government benefits.

Charitable Remainder Trust

This type of trust allows the grantor to donate assets to acharitable organization while retaining an income stream for a specifiedperiod. Upon the trust’s termination, the remaining assets go to the chosencharity – a meaningful distribution of your assets upon your passing.

Using Trusts in Estate Planning: Potential Advantages

Incorporating a trust into your estate plan can be abeneficial strategy in certain situations. Here are some key advantages ofusing trusts in estate planning as you plan for the future:

Probate Avoidance

As mentioned above, assets placed in a trust can bypass theprobate process, which can be time-consuming and costly – not to mentionstressful for your heirs. Combining trusts and estate planning allows yourbeneficiaries to receive their inheritances more quickly and efficiently.

Privacy

Unlike wills, which are subject to public record, trustsprovide a level of privacy as their terms and distributions are generallyprivate. In this way, you can keep family matters away from prying eyes.

Control and Flexibility

As you think about the topics of trusts and estate planning,consider that trusts allow grantors to specify how and when assets aredistributed to beneficiaries. This can be particularly useful for individualswho want to provide for minor children or make certain funds are managedresponsibly.

Tax Efficiency

Certain trusts, such as irrevocable life insurance trusts(ILITs), can help minimize estate taxes by removing the insurance policy fromthe grantor’s taxable estate.

Caring for Loved Ones

Specialized trusts, like special needs trusts mentionedabove, make sure that loved ones with specific needs are provided for withoutjeopardizing their eligibility for government assistance.

2025 Tax Brackets

vbeam@fortitudewealthplanners.com (Vicki Beam) — Tue, 07 Apr 2026 11:07:52 GMT

2025 Tax Brackets

Remember, these adjustments apply to income tax returns filed in 2026 for tax year 2025. Take a look at them below. 2025 Marginal Tax Brackets. For the tax year 2025, here's a breakdown of the tax rates from the lowest rate to the highest:

10% Tax Rate: This is for single individuals with incomes of $11,925 or less and married couples filing jointly with incomes of $23,850 or less.

12% Tax Rate: This applies to incomes over $11,926 for single individuals and over $23,851 for married couples filing jointly.

22% Tax Rate: For singles earning more than $48-476 and married couples filing jointly earning over $96,951.

24% Tax Rate: This rate is for single individuals with incomes above $103,351 and married couples filing jointly with incomes over $206,701. 32% Tax Rate: This rate applies if you're single and earn over $197,301 or part of a married couple earning more than $394,601.

35% Tax Rate: This rate applies to singles with incomes above $250,526 and married couples filing jointly with incomes over $501,051.

37% Top Tax Rate: The highest rate applies to single taxpayers earning more than $626,351 and married couples filing jointly with incomes exceeding $751,601. 2024

The new standard deduction for married couples filing jointly will rise to $30,000 and for single taxpayers and married individuals filing separately, the standard deduction increases to $15,000 for 2025. For heads of households, the standard deduction will be $22,500.

The new IRS limit for 2025 FSA contributions is $3,300.

Taxpayers can give up to $19,000 each in gifts in 2025 without paying taxes.

The IRS will exempt up to $13.99 million from the estate tax.

2025 Retirement Contribution Limits

vbeam@fortitudewealthplanners.com (Vicki Beam) — Tue, 07 Apr 2026 10:43:30 GMT

2025 Retirement Contribution Limits

Regarding 401(k), 403(b), 457 plans, and Thrift Savings Plan: The contribution limit for 2025 has increased to $23,500, a rise from the previous year's $23,000.

New “super catch-up” contribution: Individuals aged 60 to 63 can contribute up to an additional $11,250, raising the total limit to $34,750. Bonus tip: If you’re eligible, consider maximizing contributions now, as the super catch-up ends at age 64.

For individuals age 50 and older, the catch-up contribution remains at $7,500, resulting in a maximum contribution of $31,000 for 2025. For Traditional and Roth IRAs: The annual contribution limit remains at $7,000. Individuals aged 50 and above may continue with an additional catch-up contribution of $1,000, resulting in a total contribution of $8,000.

It is also essential to note the modifications in the income phase-out range for Roth IRA contributors: For single filers and heads of household, the range is now between $150,000 and $165,000. For those married and filing jointly, the updated range is between $236,000 and $246,000.