Trust Structures

Structure, in plain English.

A trust decides who holds title and who receives what, on your schedule instead of a court's. These are the example setups families and operators review with counsel. We help you get oriented. Your attorney drafts the documents that fit your facts.

What a trust actually changes

In plain English

Without a plan, heirs receive money in their own name and can spend all of it. With a trust, the money lands inside a system and the trustee follows the rules you wrote: how much, when, and under what conditions. That is the whole point of planning ahead.

Without a trust

A lump sum arrives in someone's personal name. You lose the lever on timing and purpose, and the business has to scramble on day one.

With a trust

Capital lands in the trust. Operations keep running under the managers already named. Family gets support on a schedule, not a free-for-all.

Most people start with a living trust

For couples and families, a revocable living trust is usually the cleanest place to begin. You keep control and can change it while you are alive. If you cannot act, the successor trustee you named steps in. A fuller holding structure comes later, after the trust exists and is funded with counsel.

GRANTORS You / Spouse REVOCABLE Living Trust WHO GETS HELP Beneficiaries BACKUP MANAGER Successor Trustee HELD BY THE TRUST Life Insurance
Ownership and control Money and roles

What actually goes into the trust

A trust that holds nothing does not help anyone. Funding it is the step people skip, and it is the reason plans fail quietly years later. This is the list, whichever structure you pick.

Life insurance

This is the one most often found wrong. A policy owned by or payable to the trust means the death benefit lands inside the plan, on the schedule you wrote, instead of arriving as a personal check someone can spend freely.

Owning the policy and being named as beneficiary are not the same thing, and they carry different tax and protection outcomes. Your attorney sets both, and a licensed partner places the policy.

Business credit lines

Credit belongs with the company that borrows, and the trust owns that company. Keeping the borrowing in the business name keeps it off your personal file and keeps the ownership line inside the plan.

Underwriting still looks at the business, and often still asks for a personal guarantee. Moving a line is a lender conversation as much as a legal one.

Company interests

Membership interests in your LLCs, usually held through a holding company. The business keeps operating under the managers named in its own agreements. What changed is the ownership line above it.

Property

Your home and any rentals get retitled with counsel directing each step. Property in a second state is worth raising early, because it is the usual reason a family ends up in two court processes.

Accounts and reserves

Bank, brokerage, and store-of-value holdings. Each has its own funding step, and a trust that holds nothing does not help anyone.

Retirement accounts are the exception and usually stay in your name with beneficiaries aligned to the plan. Ask counsel before moving one.

Four example grids

These are menus, not prescriptions. Pick the one closest to your life, then refine it on a structure call. Your attorney customizes the entities, the trust terms, and the funding steps.

A

Full Legacy Grid

Multi-generation stack for families planning past their own lifetime.

DYNASTY-STYLE Trust HOLDING CO HoldCo OpCo Asset LLC Admin LLC COVERAGE Life Insurance
What this accomplishes
  • Grandchildren inherit a working system, not a one-time check that ends with the first generation.
  • New companies can be added later without re-papering the trust each time.
  • Family ownership stops depending on any one person staying alive or staying interested.
What it does not do
It is the most involved option to set up and maintain, and the wrong place to start if no trust exists yet.
Who it is for
Families building multi-generation wealth who want a long-horizon ownership plan. A charitable foundation can sit beside the stack as its own branch.
Where coverage sits
Usually at the trust layer, so the death benefit can refill the grid instead of sitting inside day-to-day operations.
B

Creator / RE Grid

Keeps intellectual property and real estate in separate boxes under one plan.

TRUST LAYER Trust HOLDING CO HoldCo Media OpCo Prop Mgmt Prop LLCs COVERAGE Life Insurance
What this accomplishes
  • A problem at one property cannot reach the others, or reach your catalog and brand.
  • The name and the work are owned separately from the company that exploits them.
  • You can sell or license one piece without unpicking everything else.
What it does not do
Separation only holds if each entity is genuinely run apart, with its own accounts and its own paperwork.
Who it is for
Creators, media operators and property owners who want the catalog, the brand and the rentals kept apart from each other.
Where coverage sits
Beside the media and property operations, typically trust owned, not owned by the property LLC.
C

Operator Grid

Risk separation and key-person continuity for active businesses.

TRUST LAYER Trust HOLDING CO HoldCo OpCo A OpCo B IP / Brand COVERAGE Life Insurance
What this accomplishes
  • A lawsuit against one company does not automatically reach the others or reach your home.
  • If you are gone tomorrow, the business has a named manager and keeps trading instead of freezing.
  • The brand and the operating risk stop living in the same box.
What it does not do
It is not a shield against every claim, and it does nothing for risks you should be insuring against instead.
Who it is for
Owners of active businesses who need risk kept inside each operating company, and continuity if a key person is gone.
Where coverage sits
Key-person and family coverage at the trust layer, not inside an operating company where a creditor could reach it.
D

Investor Grid

Clean sleeves for capital, property and reserves.

TRUST LAYER Trust HOLDING CO HoldCo Investments RE LLCs Store of Value COVERAGE Life Insurance
What this accomplishes
  • Each pot of money has one job, so a bad year in one does not force you to sell another.
  • Statements and tax reporting get simpler because nothing is commingled.
  • You can hand one sleeve to a different manager or heir without touching the rest.
What it does not do
Clean structure does not improve returns. It changes what happens around the money, not what the money earns.
Who it is for
Capital allocators who want investments, real estate and store-of-value assets held in clearly separate buckets.
Where coverage sits
Beside the sleeves, never mixed into a brokerage sleeve where it stops being part of the ownership plan.
Examples only

No structure is best without your facts. These four are illustrative menus from WealthGrid Management LLC. Counsel drafts the entities, the trust terms and the funding steps, and a licensed partner places any coverage.

How the money moves, and grows

Ownership is one picture. Cash is a second one, and the decks keep them apart so the two ideas do not blur. Profit and rent collect in the holding company, the trust decides what happens next, and what is not distributed stays inside and keeps working.

OPERATING Business profit ASSETS Rent and dividends POOLS IT HoldCo DECIDES Trust DISTRIBUTED Family support RETAINED Reinvested
Distribute some

Family gets support on the schedule written into the document: how much, when, and under what conditions. Paced, rather than handed over on one date.

Retain the rest

What stays inside remains subject to the trust terms and can keep working. That is the difference between a plan that ends with one generation and one that does not.

A teaching model, not a projection

This shows where cash goes, not what it earns. No return, income level, or tax outcome is promised. What a trustee may do with trust capital depends on your document, state law, and your advisors.

Own nothing. Control everything.

You have probably heard the phrase. Here is what it actually describes. Title sits in the trust and you manage as trustee, so your name is not on that ownership line. The slogan is memorable. The legal design behind it is careful, and it is not something to attempt alone.

manage, not own You (trustee seat) NON-GRANTOR IRREVOCABLE Trust holds title YOUR ROLE Trustee OWNS INTERESTS HoldCo / LLCs THIRD PARTY Creates the trust
Own nothing

Title and membership interests sit in the trust, often through a holding company. You are not the personal owner on that line.

Control as trustee

You take one seat, trustee, and run the trust under the document. A third party creates and settles it.

Counsel has to lock this down

Who settles the trust, who serves as trustee, who benefits and which powers exist will make or break the design. The wrong mix of roles collapses it. An attorney and a CPA are required, and tax character depends on the powers written into the document.

Coverage pays the trust, not a personal check

A common teaching stack: leave family money through life coverage, name the irrevocable trust as the beneficiary, then hold and invest that cash in the trust's name and design the distributions. The same stack can start earlier if you fund the trust while you are living.

policy pays the trust cash in the trust name on your written schedule STEP 1 Life coverage STEP 2 Irrevocable trust STEP 3 Trust brokerage STEP 4 Family distributions
No income is promised here

This is a teaching stack, not a WealthGrid return, recommendation or projection. Product choice is a licensed conversation, yields move, dividends are not guaranteed, and what the trustee may do with trust capital depends on the document, state law and your advisors.

Using the policy while you are living

Most people only ever hear about the death benefit. With a permanent design the policy also builds cash value you can borrow against while you are alive, without selling the asset, and the policy still pays the trust when the claim comes. Term insurance builds no cash value, so none of this applies to it.

YOU FUND IT Premiums PERMANENT DESIGNS ONLY Policy cash value term builds none WHILE YOU ARE LIVING Borrow against it interest accrues ON A CLAIM Death benefit PUT TO WORK Business or property LANDS IN THE PLAN Trust
What a policy loan actually is

You are borrowing against your own policy. Interest accrues, and anything left unpaid reduces what your family receives. It is a tool with a cost, not free money.

What it depends on

How much you can access, and when, depends on the policy, the design and the carrier. Product choice is a licensed conversation, and a licensed partner places the policy.

Not every policy does this

Only permanent designs build cash value. Term does not. Nothing here is a promise of access, growth, or a tax outcome, and none of it is investment or insurance advice.

Why the plan does not end at the first payout

Most plans stop at one claim: the money pays out, the family divides it, and that is the end of it. The version wealthy families are known for does something else. The trust holds coverage on more than one member, the claim pays the trust rather than a person, and the trustee can put it back to work, including on coverage for the generation coming up behind.

OWNER AND BENEFICIARY The Trust PAID EVERY YEAR Premiums ON MORE THAN ONE LIFE Coverage in the trust not on one person ON A CLAIM Paid to the trust to the trust, not to a person DISTRIBUTED Family support RETAINED Funds the next round
Why the trust has to own it

If a person owns the policy and a person is the beneficiary, the money lands in someone's name and the cycle continues only if they choose to continue it. With the trust as owner and beneficiary, the document decides, every time.

You do not need millions to begin

The mechanism does not care how large the first policy is. A modest one, funded consistently, starts the same cycle. Scale is a detail. The discipline is the strategy.

What we will not tell you about tax

A death benefit is generally not subject to income tax, but whether it sits outside your taxable estate depends on who owns the policy, which is the whole reason the trust owns it rather than you. Nobody can promise a tax outcome decades ahead, tax law changes, and this has to be designed for your facts by an attorney and a CPA. It also only works if premiums keep being paid for decades, by people who did not set it up, and insurability is never guaranteed.

How it moves from here

A sober sequence from a conversation to a funded structure. Quotes follow a structure discussion. We do not invent a fee before we understand what you need.

01
Structure call

We orient you to the example architectures and answer questions.

02
Intake questionnaire

The facts counsel needs before drafting anything.

03
Quote path

Scope becomes a number only after the structure is understood.

04
Trust signed

Your attorney drafts and customizes the language you sign.

05
Fund and connect

Retitle assets and align beneficiary designations with counsel.

06
Optional expansion

Holding layers come after the trust exists and is funded.

What WealthGrid does

Orient you to the example architectures, coordinate your checklist in the portal, and help you arrive at counsel prepared. This is education, not the practice of law.

What counsel does

Your attorney drafts and customizes the trust language. Your CPA weighs the tax facts. Nothing on this page replaces that work.

See which grid fits your life

Members answer a short structure intake in the portal, browse every example as a live diagram, and take a chosen direction into the structure call.

Start your structure intake →

Educational materials from WealthGrid Management LLC. Not legal, tax, or investment advice. No returns, performance guarantees, or tax-free claims. Any illustrative math is classroom-style only and is not a WealthGrid return. No fees are invented here. Quotes follow a structure discussion. An attorney and a CPA are required before you rely on any structure. Life coverage is offered through a licensed partner, not as a WealthGrid product guarantee.