Trusts are a common instrument used in estate planning, and are very versatile. Trusts can be used for businesses, protecting children, and tax planning benefits, but regardless of the reason a trust is set up for, a trustee will have to be selected to be in charge of the trust.
Trusts can be greatly useful tools when it comes to estate planning. Part of making use of trusts for estate planning is determining what financial vehicles will be used to fund them. One option is to make use of life insurance for this purpose. One particular option is to set up an irrevocable life insurance trust. These are trusts in which the trust itself is the owner and beneficiary of life insurance policies.
In our last post, we began looking at how one can use trusts to protect real estate as part of the estate planning process. We already looked very briefly at irrevocable trusts, particularly Qualified Personal Residence Trusts, and the advantages they offer.
Protecting one's real estate assets is an important part of estate planning. Whether one is dealing with real estate connected to a business, rental property, or a personal residence, it is important to consider tools that allow for the protection of these assets.
As some of our readers have experienced firsthand, divorce can have an impact on how one approaches estate planning. Conversely, the way one constructs one's estate plan can impact divorce. One of the ways it can do this is in the area of property distribution. For example, the way one leaves wealth to children can impact how property division is determined in the event a child gets divorced.
In our last post, we took a look at the Intentionally Defective Grantor Trust as a technique for minimizing estate and gift taxes. Another technique, also trust-based, is the Grantor Retained Annuity Trust (GRAT). GRATs can allow those who establish them to transfer a significant number of assets with minimal or no estate and gift tax.
Trusts can be a very valuable tool in estate planning, particularly with respect to estate and gift tax minimization. Various types of trusts can be established for this purpose, though the setup one chooses should be based on the particulars of their financial and family situation, as well as their goals.
In our previous post, we began looking at a recent Forbes article discussing surprisingly helpful estate planning lessons drawn from a recent George Clooney film which was nominated for Oscars in five different categories. The name of the film is "The Descendants."
A recent Forbes article highlighted some of the estate planning lessons that were embedded-ironically enough-in a recent film called the Descendants. The film, starring George Clooney, was reportedly nominated for Oscars in a handful of categories.
Our readers have likely heard of the possibility of going with trust-based estate plan and the various benefits of trusts. Many people, in particular, have questions about how income tax impacts trusts. Here we'll look at some basic trust income taxation matters.