Trust and estate planning

Apple Pay is a contactless payment feature accessed through your Apple® mobile device (iPhone®, iPad or Apple Watch) that allows merchants to receive payments.

Conventional ways of investing generally don’t have access to the sophisticated investment techniques hedge fund managers employ, as well as many of the instruments they use such as swaps and other derivative contracts. These characteristics can make hedge funds an alternative source of portfolio diversification.

• Investing in private debt typically requires that investors meet certain qualifications, such as a high net worth, and experience in investing. Additionally, private debt funds often require very high minimum investments.
• Unlike bonds or loan funds on an exchange, private investments aren't priced daily. This can help reduce the extent of overall portfolio swings that investors experience.
• Because most private debt investments are illiquid and cannot easily be sold for cash, they can tie up a great deal of money for a lengthy period of time.
• Due to the lack of a reliable index or even observable market prices, it can be difficult for investors to make informed decisions about individual options. We recommend that investors work with an advisor when exploring this asset class.

• Investing in private equity typically requires that investors meet certain qualifications, such as a high net worth, and experience in investing. Additionally, private equity funds often require very high minimum investments.
• Unlike stocks on an exchange, private investments aren't priced daily. This can help reduce the extent of overall portfolio swings that investors experience.
• Private equity investments are illiquid and cannot easily be sold for cash quickly. They can tie up a great deal of money for a lengthy period of time.
• Due to the lack of a reliable index or even observable market prices, it can be difficult for investors to make informed decisions about individual options. We recommend that investors work with an advisor when exploring this asset class.

Alternative investments tend to carry a higher risk level, and some strategies may require a minimum level of income or assets and a minimum investment threshold. Because of this, alternative investments are not suitable for all investors.

• Private debt can provide a compelling and meaningful opportunity set for investors who are qualified to participate because there’s a larger investable universe of private companies seeking debt financing than public loan funds or individual bonds.
• Private debt can have a structural advantage, meaning the loans that managers make usually have a contractual floating rate, various lender protections, and sometimes an equity component to capture the upside potential of the borrower, all of which give the asset class unique return characteristics.
• Private debt can offer portfolio diversification, attractive current income, lower volatility, capital preservation, and downside protection versus other investment vehicles.

While some hedge funds are looking to deliver outsized returns along with elevated risk, others are much more conservative, seeking to deliver more modest returns with lower investment risk.

Hedge funds use a variety of investment techniques, including traditional stock picking and computer-driven methods based on large amounts of data, such as statistical arbitrage or systematic trend-following.

• We believe private equity can provide a compelling and meaningful opportunity set for investors who are qualified to participate, as there’s a larger universe of private investable companies available compared with public stocks. Private equity historically has delivered higher returns than public markets^{Disclosure 5}.
• Private equity investors may receive a premium in excess of public market returns because the investment cannot easily be sold quickly for cash.
• Including private equity in investment portfolios can provide diversification benefits resulting in an improved risk-reward profile. Because of the unique characteristics of private equity investing, skilled manager research and due diligence are essential to achieving desired outcomes.
• When constructing investment portfolios, the private equity asset class also offers diversification benefits. Even though investing in private equity can be risky, adding an allocation to portfolios may help to reduce the overall price risk of those portfolios while maintaining or increasing the expected return.

For more information around private equity visit Truist Wealth alternative investments.

Like all forms of secured lending, life insurance premium financing carries special risks that you should consider. For example, an increase in interest rates will increase borrowing costs and lower returns. A decrease in collateral value may limit your ability to obtain advances, or it may require you to pay down the loan or deposit additional cash or securities. If you’re unable to meet a collateral call, Truist can force the sale of securities. There’s no guarantee that Truist will renew the loan. Talk to your advisor to learn more about the risks of financing life insurance premiums.

By funding your ILIT with a loan rather than direct contributions, you may limit your exposure to gift taxes, minimize the use of your lifetime gift-tax exclusion, and avoid disturbing or liquidating your investment portfolio to pay premiums.

Yes. To discuss potential tax implications and how they may apply in your situation, please contact your tax advisor.

Typically, Truist makes a premium loan to an Irrevocable Life Insurance Trust (ILIT). Then the trust pays the life insurance premiums as well as the interest payments on the loan. When the insured passes away, only the outstanding loan balance is subtracted from the death benefit. If properly structured, the trust receives the remainder free of income and estate taxes for the trust beneficiaries.

Typically we can provide up to 85% loan-to-value. The final amount of financing offered is based on a variety of factors relating to the aircraft itself as well as your personal financial profile.

If you’d like to explore our customized lending options, the first step is to contact your Truist advisor. They’ll guide you through the application process, providing details on the information needed for your personal financial statements and collateral. Your advisor and lending specialist will keep you updated on any inspections or additional documentation required.

No. Pieces of art can stay at your residence or be held at a museum.

Yes. We finance yachts with foreign registries, and the borrower can be domiciled in a foreign country.

Securities-based lending uses your marketable securities—such as stocks, bonds, and mutual funds—as collateral to secure your loan or line of credit. When you apply for a securities-based line or loan, we’ll assess your investment assets to identify eligible collateral. We then assign it an advance amount, which is the maximum amount Truist will lend against the collateral. You can choose to apply for any value up to that max amount.

Securities-based lending can be a great option for any type of investor looking to unlock funding without liquidating valuable assets. We can customize your line or loan to fit your collateral value, your borrowing comfort, and your anticipated use of the proceeds. At Truist, there’s no cost to put a securities-based line in place—you only pay if you borrow. This gives you convenient access to liquidity for planned or unforeseen expenses without having to interrupt your investment strategy.

You can use funding from a securities-backed loan in a variety of ways to meet your financial goals. Here are a few common examples.

• Investing in a business opportunity
• Purchasing luxury items such as a car, boat, or fine art
• Acquiring personal or investment real estate
• Funding tax obligations
• Paying for wedding or tuition expenses
• Purchasing additional securities

Some restrictions may apply—speak to your advisor to learn more.

Securities-based lending carries special risks that you should consider carefully within the context of your personal investment philosophy and risk profile. Here are some of the potential risks involved in securities-based lending.

• For a secured line of credit to remain in good standing, the assets held in the collateral account must be maintained above a set minimum value.
• A decrease in the collateral account’s value may limit your ability to obtain advances. It may also require you to pay down the loan—or deposit additional securities—to avoid the forced sale of assets in the collateral account.
• Stock concentration within an account may impact collateral eligibility.
• Clients aren’t entitled to an extension of time to meet collateral maintenance requirements.
• If you’re unable to meet a collateral call, Truist can force the sale or liquidation of any securities or investment property in the collateral account. Clients aren’t entitled to choose which securities in the collateral account are liquidated or sold.
• A forced sale of assets in your account could have adverse tax consequences and impact your long-term investment strategy.
• Truist’s Wealth Secured Line of Credit is a full-recourse loan, and clients are liable for any deficiency.
• An increase in interest rates will affect your overall cost of borrowing.

Talk to your advisor to learn more about the risks of securities-based lending and how they may impact you.

The maximum mortgage loan you can borrow depends on a variety of factors including your overall financial picture, real estate exposure, and mortgage needs. Talk to your advisor to learn more and explore what’s available to you.

Yes. Truist allows Wealth Clients to borrow even if the client has additional mortgage loans that carry a balance.

Truist offers an expanded mortgage option to its Wealth clients and approved prospects who have a minimum of $1 million in eligible assets or investments under Truist Wealth Management. Certain members of specialty groups within Truist Wealth may also be eligible—please consult your advisor for details.

No. We can provide commercial real estate financing in all U.S. markets.

If you’re preparing to apply for commercial real estate financing, contact your Truist advisor. They’ll guide you through the application process and let you know what information and collateral are needed to proceed. Your advisor and lending specialist will also keep you updated on any inspections or documentation required for your application.

Our commercial real estate loans generally have terms up to ten years with a 25-year amortization structure. Some loans can be structured with an interest-only component. Your advisor and lending specialist will work closely with you to determine the best structure that fits your financing needs and profile.

Yes. You can receive as many direct deposit payments as you would like.

Life insurance serves multiple important roles in estate planning.

• Liquidity creation: Provides immediate cash for estate taxes, debts, and expenses without forcing asset liquidation.
• Wealth replacement: Replaces wealth transferred to charity or lost to taxes.
• Income replacement: Provides financial security for your family after your death, helping them maintain their lifestyle.
• Estate tax liquidity: Can provide funds to pay estate taxes without forcing liquidation of other assets like businesses or real estate.
• Asset equalization: Can balance inheritances between heirs when certain assets (like a business) are left to specific beneficiaries.
• Business Succession: Can fund buy-sell agreements, allowing partners or family members to purchase a business interest upon the owner's death.

The type, amount, and ownership structure of life insurance should align with your specific estate planning goals. 

*Life insurance is subject to underwriting and not all applicants will qualify. Death benefit guarantees are subject to the claims-paying ability of the issuing life insurance company.

Strategic gifting can significantly reduce your taxable estate.

• Annual gift tax exclusion: You can give up to $19,000 in 2025 ($38,000 if your spouse joins in the gift) per recipient annually without triggering a gift tax. This can transfer substantial wealth over time.
• Lifetime gift tax exemption: You can use your lifetime exemption for gifts exceeding the annual exclusion amount.
• 529 college savings plans: Front-load five years of annual exclusion gifts ($95,000 per donor in 2025) into college savings accounts.
• Medical and education exclusion: Direct payments of tuition to educational institutions or medical expenses to healthcare providers are unlimited and gift-tax free.
• Charitable gifts: Lifetime gifts to qualified charities provide income tax deductions while reducing your taxable estate.
• Charitable Remainder Trusts (CRTs): Allow you to make gifts to charity while retaining an income stream, with potential income, gift, and estate tax benefits.
• Charitable Lead Trusts (CLTs): Provide income to charity for a set period before passing assets to family members, potentially with reduced gift or estate taxes.
• Appreciated assets: Gifting appreciated assets removes future appreciation from your estate and can provide income tax benefits to recipients.
• Family entity gifts: Gifting interests in family businesses or investment entities may qualify for valuation discounts.

Regular gifting through these methods can substantially reduce estate taxes while supporting loved ones and causes you care about. Keep in mind that effective gifting strategies require coordination with your overall estate plan and consideration of both tax and non-tax factors.

Several strategies can help minimize estate taxes.

• Lifetime exemption utilization: The federal estate tax exemption ($13.99 million per individual in 2025) can be used during life or at death.
• Credit shelter trusts: Also called bypass trusts, these utilize both spouses' estate tax exemptions and keep appreciation out of the surviving spouse's taxable estate.
• Unlimited marital deduction: Allows unlimited tax-free transfers to a spouse (though this may not always be the optimal strategy).
• Portability: Allows surviving spouses to use deceased spouse's unused exemption amount.
• Irrevocable Life Insurance Trusts (ILITs): When properly structured, an ILIT can keep life insurance proceeds outside your taxable estate while providing liquidity and asset management for beneficiaries.
• Grantor Retained Annuity Trusts (GRATs): Allow you to transfer appreciation on assets above a specified rate of return to beneficiaries with reduced gift tax consequences.
• Charitable giving: Donations to qualified charities can provide estate tax deductions.
• Business valuation strategies: For business owners, minority interest discounts can reduce the taxable value of business interests transferred to family members.
• Family limited partnerships: Can facilitate transfers of wealth while maintaining control and potentially qualifying for valuation discounts.

These strategies should be implemented with qualified tax and legal advisors, especially given changing tax laws.

You can establish various terms for asset distribution, including:

• Outright distribution: Immediate transfer of assets to beneficiaries.
• Trust distributions: Assets can be held in trust with specific distribution schedules, such as:
  • Income for life with principal distributed later
  • Distributions at specific ages or milestones
  • Discretionary distributions based on needs
  • Support for specific purposes (education, healthcare)
• Qualified Terminable Interest Property (QTIP) trust: Provides income to a surviving spouse while ensuring specific beneficiaries (for example, children from a previous marriage) receive the principal after the spouse's death.
• Charitable Remainder Trusts (CRTs) or Charitable Lead Trusts (CLTs): Structure distributions between charitable and non-charitable beneficiaries.

The terms can be customized based on your goals and beneficiaries' circumstances, including considerations for minor children, beneficiaries with special needs, or those who may need asset management oversight.

Your assets can be distributed through several mechanisms.

• Will: This cornerstone estate planning document directs how your probate estate will be administered and distributed.
• Trusts: Living trusts or testamentary trusts can manage and distribute assets according to specific terms you establish.
• Beneficiary designations: Assets such as life insurance, retirement plans, and annuities pass directly to named beneficiaries outside of probate.
• Joint ownership: Property owned jointly with rights of survivorship passes directly to the surviving owner.

Creating a comprehensive estate plan ensures all assets—both probate and non-probate—are coordinated to fulfill your overall distribution goals.

Several key individuals will make decisions for your estate.

• Executor/personal representative: Named in your will, this person administers your estate and distributes assets according to your wishes. They collect assets, pay debts, file tax returns, and distribute property to beneficiaries. You can choose a spouse, family member, friend, or a corporate executor, such as a bank trust department.
• Trustee: If you establish trusts, your trustee will manage trust assets for your beneficiaries. An effective trustee should possess investment knowledge, objectivity, and availability to handle trust responsibilities over time.
• Guardian: For minor children, you can name a guardian in your will to care for them if both parents die.
• Power of attorney agent: This person makes financial decisions if you become incapacitated.
• Healthcare proxy: Through a durable power of attorney for healthcare, you can designate someone to make medical decisions if you become incapacitated.

Proper estate planning is essential to avoid a situation in which a state court appoints an administrator for your estate and potentially a guardian for your minor children. The administrator would then follow state intestacy laws rather than your wishes.

Marriage and divorce are significant events that can substantially impact your will.

Remarriage:

• In many states, a subsequent marriage generally revokes a previously executed will, unless the will specifically addresses the possibility of marriage, or the will was made in contemplation of that marriage.
• Even without automatic revocation, new spouses typically have statutory rights to claim a portion of your estate regardless of what your will says.
• Stepchildren have no automatic inheritance rights unless legally adopted.
• Prenuptial agreements can modify these default rules.

Divorce:

• In most states, divorce automatically revokes will provisions benefiting your ex-spouse.
• Provisions naming former in-laws may remain valid.
• Beneficiary designations on non-probate assets, such as retirement accounts and insurance, may not be automatically revoked by divorce.
• Provisions for children generally remain intact.

After either event, you should:

• Execute a new will reflecting your current wishes.
• Update beneficiary designations on all accounts.
• Review/revise powers of attorney and healthcare directives.
• Consider trusts to balance obligations to new spouse and children from previous relationships.

Remember that while these answers provide general guidance, estate planning should be tailored to your specific situation with the help of qualified professionals, including an attorney, financial advisor, and accountant.

When selecting an executor (personal representative), consider these important factors:

• Willingness: Your executor should be agreeable to serving in this role.
• Availability: The executor must have the willingness, capacity, and attentiveness to handle potentially years of estate administration.
• Capability: Estate settlement is a complex and time-consuming job requiring financial literacy and an understanding of investments, taxes, and legal matters.
• Organizational skills: Capacity to track deadlines, paperwork, and administrative details.
• Trustworthiness: Complete honesty and integrity are essential.
• Objectivity: Ability to make fair, unbiased decisions regarding estate matters.
• Location: An executor who lives close to your assets may have an easier time administering the estate.
• Conflict management skills: Ability to navigate family dynamics and potential disagreements.
• Corporate vs. individual: Consider whether appointing Truist as a corporate fiduciary might be preferable to relying solely on family members or friends.
• Co-executors: You might appoint a family member or friend as co-executor to provide oversight alongside a corporate executor.

A will can incorporate several tax-reduction strategies.

• Credit shelter provisions: Create a credit shelter (bypass) trust in your will to utilize both spouses' estate tax exemptions.
• Marital deduction planning: Direct certain assets to your spouse to take advantage of the unlimited marital deduction.
• Charitable bequests: Include gifts to qualified charities in your will to provide estate tax deductions.
• QTIPs and QDOTs: Create qualified terminable interest property trusts for spouses or qualified domestic trusts for non-citizen spouses.
• Pour-over provisions: Direct assets to an existing trust that contains tax-advantaged provisions.
• Disclaimer planning: Allow surviving spouse the flexibility to disclaim assets to trigger contingent provisions, optimizing tax outcomes based on circumstances at death.
• Generation-skipping planning: Structure bequests to utilize generation-skipping transfer tax exemption.
• State estate tax planning: Create state-specific provisions to address states with lower exemption amounts than federal.
• Business succession planning: Include provisions for tax-efficient transfer of business interests.

Modern wills often include flexible provisions that allow executors and trustees to make post-death tax elections based on tax laws and family circumstances at the time of death.

When you move to a new state or have assets in multiple jurisdictions, several important implications arise.

• Legal validity: Provisions that are valid in one state may be invalid in another
• Multiple probate proceedings: Assets in different states/countries may require separate probate proceedings.
• Conflicting laws: Different jurisdictions have varying rules regarding:
  • Marital property rights
  • Inheritance taxes and estate taxes
  • Will execution requirements
  • Trust recognition and administration
• Timing complications: Dealing with multiple jurisdictions can delay distributions.
• Foreign property considerations: Some countries restrict foreign ownership or inheritance.
• Administrative challenges: Having an executor and witnesses residing in a distant state could hamper the administration and settlement of your estate. Multiple proceedings can increase legal fees and complexity.
• Property laws: Different states have different approaches to property ownership.

Potential solutions include:

• Creating a revocable living trust to hold multi-jurisdictional assets
• Using transfer-on-death designations where available
• Creating separate wills for different jurisdictions (carefully coordinated to avoid conflicts)
• Joint ownership in some circumstances

Professional guidance from advisors familiar with all relevant jurisdictions is particularly important in these situations.

Rather than following a fixed schedule, consider reviewing your will whenever significant life events occur, including:

• Family changes: Births, deaths, marriages, or divorces
• Asset changes: Significant increase/decrease in wealth, buying/selling major assets
• Relocating to another state: Different state laws may affect will provisions
• Substantial changes in estate value: Significant increases or decreases in your wealth
• Business changes: Starting, buying, or selling a business; entering buy-sell agreements; changing business structure; or the death of a business partner
• Tax law changes: On average, tax laws change every couple of years
• Health changes: Significant diagnosis that might affect your planning timeline
• Relationship changes: Estrangements or reconciliations with potential beneficiaries

Many estate planning attorneys offer periodic review services to ensure your documents remain current.

You can maintain control through a number of approaches.

• Careful trustee selection: Choose trustees with investment expertise aligned with your philosophy or who will honor your stated preferences.
• Detailed trust language: Include specific investment directives, policies, and restrictions in the trust document.
• Investment policy statement: Create a separate document outlining investment objectives, risk tolerance, asset allocation, and performance expectations.
• Reserved powers: In some trusts, you can retain investment authority while delegating other trustee duties.
• Trustee removal/replacement provisions: Enable beneficiaries or trust protectors to replace trustees who deviate from investment guidelines.
• Corporate trustee: Consider appointing Truist as a corporate fiduciary to fairly and objectively execute the details of your estate plan.

Different states have varying laws regarding trustee investment duties and the ability to direct investments, so jurisdiction selection can be important.

Trusts offer various financial and philanthropic advantages.

• Tax advantages: Charitable trusts offer income, gift, and estate tax savings. Lifetime gifts to qualified charities provide current income tax deductions while reducing your taxable estate.
• Support for causes: Charitable trusts help further the work of causes you believe in while providing tax benefits.
• Income retention: With a Charitable Remainder Trust (CRT), you can continue receiving income from assets you've donated to charity for life or for a fixed period of years.
• Capital gains tax avoidance: A CRT funded with appreciated low-basis property allows the trust beneficiary to benefit from the trust's sale of the property without paying capital gains tax.
• Family benefits: By replacing the value of the property given to charity with insurance payable to a family member, you can make a tax-advantaged gift to charity without shortchanging your family.
• Structured giving: A Charitable Lead Trust (CLT) allows you to make regular gifts to a favorite charity while eventually passing assets to family members, potentially with tax benefits.

Charitable trusts can be especially beneficial for donors with appreciated assets, high income in certain years, or the desire to support charities while addressing family needs.

Trust modification options depend primarily on trust type and applicable state law.

Revocable Living Trust modification:

• Can be freely amended or revoked by the grantor
• Becomes irrevocable upon the grantor's death or incapacity

Irrevocable Trust modification:

• Often requires the consent of all beneficiaries
• May involve court intervention

Modern trust law in many states now provides additional flexibility, including:

• Decanting: Trustee transfers assets from existing trust to new trust with modified terms
• Nonjudicial Settlement Agreements: All interested parties agree to modify certain terms without court approval
• Virtual Representation: Allows parties to represent interests of minor/unborn beneficiaries
• Trust Division/Combination: Splitting or combining trusts to better serve beneficiaries

Some jurisdictions have enacted the Uniform Trust Code or similar laws providing specific statutory pathways for modification.

Modification is generally easier when:

• All beneficiaries consent
• Changes align with the trust's original purpose
• Tax consequences are properly considered
• State law is favorable to modifications

For any trust modification, consult with legal counsel to navigate complex requirements and avoid unintended consequences.

Trusts offer various tax-reduction strategies.

• Credit shelter trust (bypass trust): Allows both spouses to utilize their estate tax exemptions, keeping appreciation out of the surviving spouse's estate.
• Qualified Terminable Interest Property (QTIP) trust: Allows you to provide income to your surviving spouse while controlling who receives the assets after your spouse's death, while still qualifying for the marital deduction.
• Grantor Retained Annuity Trust (GRAT): Transfers appreciation above the IRS hurdle rate with minimal gift tax impact.
• Charitable Remainder Trust (CRT): Provides income to you or other beneficiaries for life or a defined number of years, with the remainder going to charity. This can provide income, gift, and estate tax benefits.
• Charitable Lead Trust (CLT): Pays income to charity for a set period, with the remainder passing to family members—potentially with reduced gift or estate taxes.
• Irrevocable Life Insurance Trust (ILIT): Keeps life insurance proceeds outside your taxable estate.
• Qualified Personal Residence Trust (QPRT): Transfers a home to beneficiaries at reduced gift tax value while retaining the right to live there.
• Dynasty Trust: Leverages generation-skipping tax exemption to create multi-generational wealth transfer with minimal transfer taxation.
• Intentionally Defective Grantor Trust (IDGT): Removes assets from the estate while grantor continues paying income taxes, allowing tax-free growth.
• Spousal Lifetime Access Trust (SLAT): Removes assets from the estate while indirect access remains through the spouse as beneficiary.

These trusts must be carefully structured to comply with complex tax rules and should be implemented with qualified advisors.

Trusts can provide significant creditor protection through various mechanisms.

• Self-settled asset protection trusts: In certain states and foreign jurisdictions, you can create trusts that potentially protect assets from your own creditors while retaining some benefits. Asset protection trusts should be created proactively before creditor issues arise.
• Third-party spendthrift trusts: Trusts created for beneficiaries can include spendthrift provisions preventing creditors from reaching trust assets before distribution.
• Discretionary trusts: When trustees have discretion over distributions, creditors generally cannot force distributions.
• Support trusts: Trusts limited to providing for beneficiaries' support needs may have protection from creditors.
• Specialty trusts: Particular types of trusts protect specific assets:
  • Irrevocable Life Insurance Trusts (ILITs) protect life insurance
  • Retirement trusts can extend creditor protection for inherited retirement accounts
  • Business trusts can shield business assets

The level of protection varies by:

• State law—some states provide stronger protection than others
• Trust structure and provisions
• Timing of trust creation relative to creditor claims
• Whether fraudulent transfer laws apply