Create trusts, businesses, and holding groups

Introduction

Luminary allows users to create many different types of entities that make up your client’s estate so you can get very detailed as you build out your client’s family enterprise. Below, we’ll provide some helpful tips and tricks for building out a family in Luminary.

Direct holdings

For every new client, Luminary automatically creates direct holding groups to structure collections of accounts/assets, liabilities, and insurance policies that are held directly by clients. When holdings are added to a holding group, it will show up as a tile on the waterfall.

If additional tiles for direct holdings are desired, create a new holding group and select the type of holding group if required.

Holding groups are organized by owner. The following options will appear showing distinct types of direct holding structures that are possible. These grouping are destined to consolidate holdings that follow the same dispositions.

Personal & family trusts

Enter assets that are held in trust, for the benefit of non-charitable beneficiaries.

Here are a few tips for entering personal & family trusts:

• If you have individual trusts for beneficiaries that are all exactly the same, you can consider grouping the subtrusts

  • Consider entering “Grandchildrens’ Trusts” instead of “Grandchild 1 Trust”, “Grandchild 2 Trust”

• Don’t enter subtrusts or testamentary entities that are created at the death of the grantor as new entities

  • These types of trusts can be added in the “Dispositions” section of the parent trust

Charitable entities

Use any of these four entity types to enter charitable entities in Luminary:

• Charitable remainder trusts

• Charitable lead trusts

• Donor advised funds

• Private foundations

Business entities

Use these entity types to enter in business entities, including LLCs, GPs, LPs, S-corps, C-corps, and sole proprietorships.

Here are a few tips for entering personal & family trusts:

• Enter business entities that were created by the grantor such as family operating businesses, family limited partnerships, or other business entities formed by the family for estate planning purposes

  • Most of our customers do not enter the details of business entities, such as LP ownerships in large hedge funds, as distinct business entities, instead they include the value of these investments in the owning trusts and accounts

• Luminary offers robust ownership structure data entry, as well as tracking key people

  • Ownership can be individuals or other entities, and we offer diagram ownership views under the “Entities” tab of the platform

• You can store all information and documents needed to file with finCEN for CTA compliance using Luminary