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…
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…
WHAT IS IT? – What is a Charitable Remainder Trust? A Charitable Remainder Trust (also known as a “ CRT”) is a permanent, irrevocable trust that is established to pay an amount at least annually to the Trustor for a period of time and then at the end of that…
If you are rich enough your estate will pay a 40% tax above the exemption UNIFIED TAX CONCEPT Under the federal estate taxes and gift taxes laws, the amount that one gives away during one’s lifetime counts toward the entire exclusion from estate and gift taxes. The lifetime estate and…
Gifting before death may cause huge capital gains taxes INCOME TAX “BASIS” CONCEPT Under our system of federal and state income tax, if the property is sold before death for more than what was pay for it then there is a capital gain. There are special rates which apply to…
County assessor will reassess property tax on death of an owner unless prevented THE PROPERTY TAX SYSTEM California Property taxes are administered by the County in which the real property is located. The County tax assessor determines the amount of property taxes based upon the fair market value of the…
The wrong kind of deed can have expensive and unintended consequences. Once the horse is out of the barn you can get back! What is a deed? Real estate property ownership is legally changed by a document commonly known as a deed which is signed by the person making the…
A permanent estate builder that provides asset protection and covers future generations What does a Life Insurance trust do? Life Insurance Trusts – A Life Insurance Trust is a permanent, irrevocable trust that is established to own one or more life insurance policies that cannot be altered, amended, or revoked.…