An irrevocable life insurance trust allows you to transfer ownership of a permanent life insurance policy into a separate legal entity. The death benefits are then removed from your taxable estate, potentially saving heirs millions in estate taxes. You fund the trust with annual gifts — within IRS gift-tax limits — to pay premiums, and the trust owns the policy outright. Because an ILIT cannot be modified or revoked once established, it offers durable protection, creditor shielding and predictable liquidity for beneficiaries on your passing.

Grantor retained annuity trusts, or GRATs

A grantor retained annuity trust is designed to pass appreciating assets to heirs at a reduced gift-tax cost. You transfer assets — such as concentrated company stock or real estate — into the GRAT and retain an annuity payment for a fixed term. If the assets grow faster than the IRS’s published interest rate, the excess appreciation passes to beneficiaries free of additional gift tax at the end of the term. In today’s historically low-interest environment, a carefully timed GRAT can supercharge intergenerational transfers even if markets rally.

Charitable remainder trusts (CRTs)

Charitable remainder trusts combine philanthropic goals with legacy planning. You contribute assets — publicly traded securities, privately held shares or real estate — into the trust and receive an income stream for life or a term of years. When the trust term ends, the remaining assets flow to one or more charities you designate. CRTs deliver an immediate income-tax deduction, remove donated assets from your estate and avoid capital gains upon sale. This approach balances retirement income needs with lifelong charitable giving.

Family limited partnerships, or FLPs

Family limited partnerships let you pool real estate, business interests or investment portfolios under a partnership structure. Typically, you and your spouse serve as general partners — retaining management authority — while limited partnership units are gifted to children or grandchildren. Because those interests are minority and lack marketability, IRS valuation discounts can reduce the taxable value of transfers by 20%-30%. FLPs not only facilitate discounted wealth transfer but also establish family governance structures and help keep assets consolidated under professional management.

Spousal lifetime access trusts, SLATs

A spousal lifetime access trust is an irrevocable vehicle created by one spouse to benefit the other. While removing trust assets from your taxable estate, it still permits distributions to your spouse if needed. SLATs lock in today’s high estate-tax exemptions and preserve access to liquidity for necessary expenses. If income needs arise in retirement — or if future legislation lowers exemptions — you and your spouse retain confidence that funds remain available.

Dynasty trusts

Dynasty Trusts enable wealth to transfer for multiple generations without incurring estate taxes at each generational leap. Several states — including Utah — permit these trusts to last indefinitely, avoiding the traditional “Rule Against Perpetuities.” By funding a Dynasty Trust with diversified portfolios, privately held companies or real estate, you ensure that your values and financial legacy will benefit children, grandchildren and great-grandchildren without repeated tax attrition.

Utah’s trust-friendly environment

Utah is consistently ranked among the most favorable jurisdictions for trust formation. The state imposes no income tax on trust distributions, offers strong asset-protection statutes and allows perpetual or near‐perpetual trust durations. Retirees with substantial assets can leverage Utah’s legal framework — through directed trusts or private trust companies — to enhance privacy, strengthen creditor shields and maximize dynasty-trust advantages.

Annual review and trustee considerations

Even the most robust legacy plan demands regular review. Tax laws change, family circumstances evolve and asset values fluctuate. Scheduling annual check-ins with your estate-planning attorney and financial advisor ensures your structures remain aligned with your goals. Thoughtful trustee selection — whether a professional fiduciary, family member co-trustee or corporate trust department — helps guarantee faithful administration and reduces the risk of disputes.

Combining strategies for maximum impact

No single technique fits every family. High-net-worth retirees often blend multiple vehicles — funding an ILIT alongside a CRT, establishing a GRAT for concentrated stock and crafting a Dynasty Trust to preserve broader portfolios. This layered approach allows liquidity where needed, tax efficiency where possible and comprehensive control over asset succession.

Next steps

Legacy planning is as much an emotional journey as a financial exercise. It requires clear communication with heirs, careful documentation and collaboration with a team of professionals — estate attorneys, tax advisors, trust officers and financial planners. Begin the conversation with your family and your advisors now, while current exemptions and interest rates remain favorable, so you can secure a lasting legacy that truly reflects your values and aspirations.

A will is an essential foundation, but it is just the starting point. By incorporating advanced techniques such as ILITs, GRATs, CRTs, FLPs, SLATs and Dynasty Trusts into your estate plan, you can protect your wealth against taxation, provide for loved ones with confidence, and ensure that the story of your family’s success continues for generations to come.

Lyle Boss, The REAL BOSS Financial, endorsed by Glenn Beck as the premier retirement advisor for Utah and the Mountain West states. Boss Financial, 955 Chambers St., Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.