How to Create a legacy

 Creating a multi-generational legacy using Tennessee trusts can be a powerful estate planning strategy. Tennessee offers various trust options that can help you preserve and pass on your wealth to future generations while enjoying certain tax advantages and asset protection. Here's how we help our clients establish a multi-generational legacy with Tennessee trusts:

1. Revocable Living Trust: A revocable living trust is the cornerstone of every estate plan, allowing you to maintain control over your assets during your lifetime, with full power to spend, save and use your assets just as you did before you created your trust.  While you are alive, you and your spouse will both have the "roles" of  settlors, trustees, and beneficiaries of the trust.  Upon the death of the first spouse, the surviving spouse takes over as trustee, and all the assets in the trust avoid probate.  At this time, the trust becomes irrevocable and (depending on the terms of the trust) some beneficiaries might immediately receive assets, and other sub-trusts may be established for the Health, Education, Maintenance and Support of the surviving spouse  or for special-needs children.  After the death of the surviving spouse, the remaining assets will then be given to the then-named beneficiaries (typically the children). 
2. Irrevocable Trusts: Irrevocable trusts, such as irrevocable life insurance trusts (ILITs) or dynasty trusts  can be effective tools for creating a lasting legacy.  Assets placed in these trusts are typically removed from the estate, and thus not subject to estate taxes and can benefit multiple      generations.  An ILIT, for example, can be used to pay estate taxes, ensuring that the intended beneficiaries receive the full value of the estate.
3. Generation-Skipping Trusts: Tennessee allows for the creation of generation-skipping trusts      (GSTs). These trusts can be used to pass assets directly to grandchildren or more remote descendants without incurring generation-skipping transfer taxes (GSTT). This strategy is beneficial when you want to create a legacy for your grandchildren or further descendants.
4. Family Limited Partnerships (FLPs) and Family Limited Liability Companies (LLCs): You can      establish FLPs or family LLCs to consolidate family assets and wealth. By gifting or selling interests in these entities to family members, you can distribute wealth, protect assets, and provide a structure for managing family resources over multiple generations.
5. Charitable Remainder Trusts (CRTs): Tennessee trusts like CRTs allow you to provide for both charitable causes and your family's financial well-being.  By donating assets to a CRT, you can receive an income stream during your lifetime, with the remaining assets ultimately going to a charitable organization or, if structured correctly, to family members.
6. Education and 529 Savings Plans: Tennessee offers 529 college savings plans that can be established for the benefit of specific family members. You can contribute to these accounts, which grow tax-free, and he funds can be used for educational expenses for multiple generations.
7. Closely Held Business Succession Planning: If you have a closely held family business, Tennessee trusts can play a significant role in succession planning.  Establishing trusts to transfer ownership and control of the business to the next generation can help ensure the business's  continuity and longevity.
8. Asset Protection Trusts: Certain Tennessee trusts can provide asset protection benefits while still allowing you to benefit from the trust's income and, in some cases, principal. This can help safeguard family wealth from creditors and other potential threats.

Tennessee trusts offer a range of options for you to create a multi-generational legacy by efficiently transferring and preserving your wealth. It's crucial for you to consult with an experienced attorney to develop a comprehensive estate plan that aligns with your unique objectives and takes full advantage of the available trust options.