Define WHO the Children are in the Trust or Face Expensive Uncertainty The BASIC PURPOSE of a Trust in Estate Planning A trust that is typically used to plan for asset transfer for the next generation is known as a “living trust” and is revocable and changeable during the lifetimes…
Can I Really Spend All My Inheritance Money, or Does Uncle Same Get a Portion? DOESN’T MATTER IF IT COMES FROM AN ESTATE OR TRUST Is My Inheritance Taxable – Your inheritance of money or property may come from the estate of a deceased person or from a trust established…
How did that kid get so much money to blow! 18 is the age of majority When a child turns 18 years he or she is considered to be an adult under California law. In legal terms, children under age 18 are called “minors” and when they reach age 18…
Partners pay tax on income earned even if it is not paid out to them The taxation of Family Limited Partnerships should be carefully considered in advance of setting up and rolling out your new FLP. FAMILY LIMITED PARTNERSHIP DEFINED State laws have provisions allowing people to establish limited partnerships. …
Taxation of Irrevocable Trusts – Tax rates can be high on permanent trusts IRREVOCABLE TRUST DEFINED The term “irrevocable trust” is commonly used by estate lawyers and financial planners to describe a trust which is permanent and cannot be changed or revoked. An example would be where you establish a…
Living Trust Taxation – The IRS ignores revocable living trusts LIVING TRUST DEFINED The term “living trust” is commonly used by estate lawyers and financial planners to describe a trust which is established during a person’s lifetime and which is revocable and changeable. Living trusts – are also known as…
How Often Should You do an Estate Plan Review? Outdated Estate Plan? An Estate Plan Review Helps You Deal with Life Changes Once you have your estate plan drafted and and your selected assets funded into your Revocable Living Trust, you can’t simply throw your estate planning documents into a…
What is a Qualified Domestic Trust? A Qualified Domestic Trust (also known as a “ QDOT”) is type of trust established where estate property passes to a non-U.S. citizen spouse to allow a marital deduction on the death of the first spouse. A QDOT allows the amount transferred into the…
WHAT IS A GRANTOR TRUST? According to the tax laws, IRC §671-679, a “grantor trust” is any trust in which the Trustor/Grantor retains control over the income or principal, or both to such an extent that he is regarded as the substantial owner of the trust property and income. The…
WHAT IS IT? – What is a Generation Skipping Trust? A Generation Skipping Trust (GST) is a generic term for any trust where there are trust benefits which are skipping a generation. A typical example is where a Trustor establishes a trust that does not benefit his children but instead…