A trust is an instrument set up to hold the property of an individual, often called the grantor, for one or more designated beneficiaries. The following glossary provides a brief description of various types of trusts. Because trusts are complex, it is essential that you consult a professional. Your insurance and/or financial professional can work with your attorney and accountant to help you determine which trust best fits your family’s living and estate objectives.
Testamentary—A trust that does not take effect until your death. It generally spells out how you want your estate distributed to your spouse and/or heirs. It can be redrafted during your lifetime as the needs of family members change. It can also give great flexibility to the trustee to act in your stead and treat family members as you would have if you had lived.
Revocable Living Trust—A trust created during your lifetime. Property owned by such a trust escapes the cost and publicity of probate. Another family member, trusted friend, or trust company becomes the trustee after your death or disability.
Irrevocable Trust—A trust that may not be revoked after its creation. Irrevocable trusts are typically established to help save estate taxes. They are often funded with life insurance with the trust as the owner and beneficiary of the life insurance policy. The death benefit passes directly to the trust and avoids becoming part of the taxable estate. It allows the trustee to have cash outside of the estate and outside of probate to buy assets from the estate.
Marital Deduction Trust—A trust designed to transfer assets to your spouse at your death and qualify for the unlimited marital deduction. The surviving spouse has the power to appoint those assets to beneficiaries of his or her choice.
QTIP Trust—This trust is a special type of “marital deduction” trust. It allows you to transfer assets to your spouse and control who the assets go to upon the death of your spouse. The QTIP trust qualifies for the unlimited marital deduction at your death if an election is made.
Support Trust—This type of trust is created to generate enough income to support a beneficiary (usually a child or spouse) presently dependent on your income for support. It is often designed so that the beneficiaries can live off the interest or income that is generated—not the principal.
Spendthrift Trust—This trust is useful to the grantor who is concerned that the beneficiaries may be irresponsible or ill- suited in managing the funds left to them. Guidelines may be set to specifically direct how the funds are to be disbursed, therefore ensuring that the money will not be irresponsibly “frittered away.” A trustee is designated and given discretionary powers to control the flow of assets.
Charitable Trusts—These trusts are created for charitable, educational, religious, or scientific purposes. There are a variety of charitable trust designs for the purpose of providing income for a specified period either to the charity (a charitable lead trust) or to your spouse and heirs with the remainder passing to the charity (a charitable remainder trust (CRT)).
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.