Irrevocable Trust Letter
Dear Mr. Feinstein:
I enjoyed seeing you again at the Fosters' party. Hope everything works out for you and your wife with the upcoming trip!
You had asked about establishing an irrevocable trust for your two grandchildren. This would be a good way to ensure that the children are paid by the trust for 20 years with the principal distributed to them at the end of that time. However, there are certain stipulations that must be met with an irrevocable trust. With a revocable trust, you still maintain some control over the assets. With an irrevocable trust, this is not the case. The assets belong totally to the trustees and they are responsible for maintaining them. Your control over how that management is conducted is gone.
With that said, there is no reason to think this would be anything other than a good arrangement. For example, an irrevocable trust would allow you to avoid estate taxes, as the irrevocable trust would not be subject to these, and you could also avoid paying a gift tax so long as the amount given does not exceed the annual exclusion amount in terms of transferring funds to a an irrevocable trust already established (Helsell, Fetterman, 2013; Carnes,...
Tax Efficient Financial Strategies Company Name Here Managing Director MACROBUTTON AcceptAllChangesShown [name] Tax Efficient Financial Planning Astute financial planning in the current economic climate is critical. While we cannot control the ebbs and flows of either the market or the decisions of the government that affect one's personal finances, we can attempt to grow and preserve wealth through tax efficient financial planning. There are solid vehicles available, if utilized correctly, can successfully minimize income, capital
The principal is the property that is contained in the trust that produces income like dividends, rents, and interest. Payments for bills to the trust may be paid out of either income or principal but payments to beneficiaries may be made out from income only. Where such payments will be made lies within the discretion of the trustee. Determining the proper distribution of income and principal is one of
So your wife can renounce the business given to her and then pass it without gift tax to the children. Disclaimers must be made within 9 months of the death of the first decedent if they are to avoid gift tax. An appropriate disclaimer may also be a very effective tool to assist in a poorly written estate plan. 7. JOINTLY HELD PROPERTY: The joint tenancy form of ownership could result
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now