In Perspectives, Wealth Planning

Trusts can be an effective strategy for wealth transfers when interest rates rise to help fight inflation. The effect on the performance of trusts for estate planning vehicles is often linked to the federal funds rate.

“It’s important to emphasize that there is a very limited downside to most of these strategies,” said Alexandra Blake, director and wealth advisor at Crestwood Advisors. “Even if the investment return doesn’t beat the hurdle rate, the only sunk cost is the few thousand dollars to set up the initial vehicle.”

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