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…
I was just put in charge of a trust so what do I do? Trust Administration Basics for Newly Appointed Trustees Events triggering administration. Trust administration is needed when or both of the Trustors (i.e. persons who created the trust) passes away or resigns voluntarily or becomes legally incompetent. Basic…
You can predetermine “Reasonable Trustee Fees” – if only you are properly advised A typical part of any living trust is a paragraph allowing payment of “reasonable” trustees fees. Most people establishing trusts do not realize that there is a great deal of latitude in what reasonable trustees fees are.…
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 Outdated Estate Plan?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 Personal Residence Trust? A Qualified Personal Residence Trust (also known as a “ QPRT”) is an irrevocable trust which a homeowner establishes to make a future gift of his home to his or her children while retaining the right to continue living in the home for…
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…
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…