When it comes to securing your family’s future, estate planning is a critical component. But in the realm of trusts and estate planning, one concept that often gets overlooked is the Family Advancement Sustainability Trust (FAST). You might be wondering, “Does a FAST make sense for my estate plan?” Let’s explore what a FAST is, its benefits, and how it could fit into your estate planning strategy.
What is a Family Advancement Sustainability Trust (FAST)?
A Family Advancement Sustainability Trust (FAST) is a specialized type of trust designed to promote long-term family wealth and sustainability. Unlike traditional trusts, which often focus solely on asset preservation and distribution, a FAST integrates forward-thinking strategies to ensure your family’s financial and personal goals are sustained for generations.
Benefits of a FAST
1. Long-Term Family Wealth Management
A FAST helps in managing and growing family wealth over multiple generations. It emphasizes not just the preservation of wealth but also its growth and prudent management.
2. Values and Education
Beyond financial assets, a FAST can incorporate your family’s values and educational goals. It can be structured to fund educational pursuits, support entrepreneurial ventures, or even promote philanthropic activities.
3. Flexibility
FASTs are highly customizable. They can be tailored to meet the specific needs and goals of your family, whether that includes financial support for future generations or incentivizing certain behaviors and accomplishments.
4. Tax Efficiency
A well-structured FAST can offer significant tax benefits, helping to minimize estate taxes and maximize the wealth passed on to future generations.
5. Protection from Creditors
Assets placed within a FAST can be protected from creditors, litigation, and other financial risks, safeguarding your family’s wealth.
How to Create a FAST
Step 1: Identify Your Goals
The first step in creating a FAST is to identify your long-term goals. What do you want to achieve with your estate plan? Consider both financial objectives and personal values.
Step 2: Consult with Experts
Setting up a FAST requires expertise in estate planning and trust management. Consult with a financial advisor or estate planning attorney who specializes in trusts to ensure your FAST is structured correctly.
Step 3: Draft the Trust Document
Work with your advisor to draft the trust document. This will outline the terms of the trust, including how assets will be managed and distributed, the roles and responsibilities of trustees, and any specific provisions related to your family’s goals and values.
Step 4: Fund the Trust
Transfer assets into the FAST. This could include cash, investments, real estate, or other valuable assets. Proper funding is crucial to the success of the trust.
Step 5: Ongoing Management and Review
A FAST isn’t a set-it-and-forget-it solution. Regular reviews and updates are necessary to ensure the trust continues to meet your family’s evolving needs and goals.
Conclusion
Incorporating a Family Advancement Sustainability Trust (FAST) into your estate plan can provide a robust framework for long-term wealth management, education, and family values. It offers a unique blend of financial stability and personal legacy, ensuring that your family’s future is secure and prosperous.
If you’re considering a FAST for your estate plan, we at SD Mayer & Associates are here to help. Our team of expert advisors is ready to guide you through the process, ensuring your estate plan aligns perfectly with your long-term goals.
Ready to secure your family’s future? Contact us today to learn more about how a FAST can enhance your estate planning strategy.
SECURITIES AND ADVISORY DISCLOSURE:
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Fee based planning offered through SDM Advisors, LLC. Third party money management offered through Valmark Advisers, Inc a SEC registered investment advisor. 130 Springside Drive, Suite 300, Akron, Ohio 44333-2431. 1-800-765-5201. SDM Advisors, LLC is a separate entity from Valmark Securities Inc. and Valmark Advisers, Inc. Form CRS Link
DISCLAIMER:
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. The services of an appropriate professional should be sought regarding your individual situation.
HYPOTHETICAL DISCLOSURE:
The examples given are hypothetical and for illustrative purposes only.
