Houston Rutherford & Reid Guthrie
12/1/2014
The Use of Trusts in Estate Planning
Estate Planning- Mitzi Lauderdale
Throughout history, trusts have been a beneficial and sometimes critical part of estate planning. Trusts have many different uses, and can be valuable to individuals looking to preserve, secure, or manage assets and property through a separate title. Trusts have many different uses throughout the estate planning and the financial planning industry. There are all sorts of tax advantages and loopholes that trusts can take advantage of when used properly and effectively. First off, each trust is made up of different parts. Knowing the parts of the trust is the first step towards grasping the concept behind trusts
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This individual places his/ her assets into the trust to be retitled to the ownership of the trust. Depending on the type of trust drafted, a grantor may or may not have to include the property held in the trust in his/ her gross estate upon death. However, trust documents specifically name the individual that the assets are to go to. Because of this, the trust and the assets within do not have to go through the probate process at the death of the grantor. Avoiding probate, and the fees that are often associated with probate, is another huge reason that trusts are common tools in the estate planning …show more content…
The purpose of this trust is to replace lost wealth at death by providing for the surviving spouse. An ILIT is used to prevent the insured party from having incidents of ownership on the life insurance policy covering his own life. In an ILIT the grantor makes a deposit into the trust and receives an annual payment from the trust. Upon the grantors death the surviving spouse will receive the death benefit but it will be included in the grantors gross estate. An important thing to note when looking into ILITs is that they are irrevocable meaning that once you deposit into A ILIT the amount deposited can never been withdrawn. Unless the trust is subject to a Crummy withdrawal right, then the beneficiaries have the right to make withdrawals from the ILIT for a set period of time, usually 30 days. Crummy provisions are very helpful when it comes to irrevocable trusts because its one of the only ways to access the trust funds without
On September 12, 2014, Denise Rockett filed a complaint against Eugene Nigro, Esq. Nigro was reportedly negligent when handling legal matters in her late husband’s estate. Specifically, the complainant alleges that Denise, as Executrix of her late husband’s estate, was intentionally excluded from major decisions, not properly compensated, and deprived of control over their properties. Nigro allegedly breached his fiduciary obligation and violated Mass.R.Prof.C. 1.4(b), 1.7(b), and 8.4(c).
...ational Trust website also provides an online shop from which anyone can buy gifts as wide-ranging as farm products, cards and craft items.
A Quistclose trust arises when money is paid to a recipient for a specific purpose, if that purpose fails the money is held on trust for the payer. It mostly arises in insolvency cases where the proprietary rights have to be established. However, this type of trust has been thought to be inconsistent with the traditional trust principle. Many have suggested the Quistclose trust must be treated as any other fully fledged security device taking into account the protection it offers the payer on insolvency and should therefore be registrable. This essay critically analyses the concept of Quistclose trust, whether it differs from the resulting trusts.
According to the Aquidneck Land Trust’s (ALT) website, it is a non-profit organization that aims to preserve Aquidneck Island’s open spaces and natural character for the lasting benefit of the community. The non-profit was founded in the 1990’s by a local group of residents to save many things on Aquidneck Island. Three things that these residents decided to focus on were saving the natural character, environmental health and the economic value of Aquidneck’s Island. In the early years of starting this organization, they made a goal to conserve 2,000 acres of land. This goal seemed impossible to accomplish but almost two decades after the non-profit was established, they surpassed the goal of conserving 2,000 acres of land. As John Fornoff
On transfer of any advantage of the trust, it is qualified for a 50% discount factor on
A Grantor Retained Annuity Trust (GRAT) is an estate planning technique whereby the grantor makes an irrevocable gift of assets to a trust, while retaining a payment stream from the trust in the form of an annuity usually for the life of the grantor, for a specified term of years, or for the shorter (but not longer) of those periods (1). GRATS are sometimes referred to as split-interest trusts because they are comprised of two forms of interest, the retained interest, which the grantor receives as an annuity, and the remainder interest, which passes on to the beneficiary upon termination of the trust. The gift tax on the transfer of the assets into the GRAT is determined when the GRAT is created based on the fair market value of the remainder interest at the time of the gift, which is the fair market value of the property transferred to the trust minus the value of the retained annuity interest. The retained interest is determined through an actuarial calculation that factors the present value of the annuity the grantor receives using the §7520 rate. §7520 provides, in part, that the value of any annuity is to be determined under the tables prescribed by the Secretary and by using an interest rate equal to 120 percent of the Federal midterm rate in effect under §1274(d)(1) for the month in which the valuation date falls (2).
Since we spoke on Thursday, March 9, 2017, I have been working on various versions of the 2017 Amendment to the Family Trust (the "Trust"), a revocable living trust created on October 23, 1996, amended on October 29, 2008, and June 27, 2016.
A trust is a legal entity, whereby the person creating the trust (the Grantor) transfers ownership of certain assets to a Trustee who manages and administers the assets for the benefit of the beneficiaries in accordance with the terms set forth in the ...
It allows a person to give away their assets during their lifetime. These assets, once given, are no longer in the trust creator’s control. This means, the assets are no longer considered part of the trust creator’s estate. The benefit of this is the fact that because the assets are no longer part of the estate, they are no longer subject to estate taxes. Irrevocable trusts are rare, because it usually is only beneficial if a person has so much money, they could not hope to spend it all in one lifetime and they want to ensure their beneficiaries are not taxed at a high
What is a living trust? A living trust is an arrangement that designates a “trustee” to hold legal title of property for another person or beneficiary. When creating a living trust, you can designate yourself as the trustee in order to keep full control of the property placed in trust. The living trust is just what it sounds like: a trust you put in place when you are still alive instead of one that is created according to the terms of your Will upon your death. When the topic of a living trust comes up, the most common response from most clients is, “But I don’t have enough money to need a trust.” This brings to light a major misconception about estate planning. Equating the need for legal documentation/protection to the amount of money and
Do you need an attorney for making a living trust? If you want to avoid probate then making a living trust will be a good strategy. But, in what ways you can proceed? Making a living trust by your own is not possible. No one can do this job with a little knowledge or without experience. It needs an expert lawyer to handle all these tasks. For avoiding probates a majority of the people asks “Is there any living trust attorney near me”. For availing a reliable lawyer you may visit law firms online. There you will come to know how living trust can help you for avoiding probate. You can find expert lawyers at http://www.steveblisslaw.com.
Understanding Life Insurance Trusts 1. What is the purpose of a life insurance trust? You maintain more influence over your insurance plans with an irrevocable life insurance trust. You also have control over the funds that are paid out from them.
Except for charitable trusts, every trusts must satisfy three certainties of intention, subject matter and objects. Trusts that do not have a human beneficiary are generally void. The beneficiary principle requires a valid trust to have human beneficiaries. However, charitable purpose trusts are not subject to the beneficiary principle. To be a valid charitable trust, it must be for a recognized charitable purpose, for the public benefit and for exclusively charitable purposes. Charitable trust is exempt from the rule against perpetuities. For non-charitable purpose trust, it is a type of trust which has no beneficiaries but exists for advancing some non-charitable purpose of some kind and it needs to comply with the perpetuity rules. There
Trust is the belief and confidence in the integrity, reliability and fairness of a person or organization.
Religious trust utilized their funds as per guidelines specified by donor. The trusts work in their specific areas in which they are registered. Maximum utilization of trust funds to deprived persons.