Mitigating risk is an important component when managing your most important asset.One of the biggest threats to businesses of all sizes is cybercrime.Other risks to consider are asset concentration, fiduciary risk, and risks unique to the nature of your specific business.Planning ahead is critical to mitigate many different kinds of risk and protect your business from losses.
One estate planning option to help reduce your taxable estate and protect assets for beneficiaries. A discretionary sprinkling trust is designed to provide distributions to those beneficiaries who need them the most.The trustee is given the discretion to “sprinkle” income and/or principal among several beneficiaries or to let it accumulate in the trust.
You expect the trust you create to provide for your beneficiaries’ health, education, maintenance, and support. But how would the trustee handle a discretionary payout? It’s important to design an instrument that will anticipate multiple scenarios and provide tax-saving advantages.Trusts can be extremely effective estate planning tools for minimizing taxes and ensuring your beneficiaries are cared for according to your wishes.