Are There Non-Tax Reasons to Use a Dynasty Trust?
August 22, 2017There are many reasons to Use a Dynasty Trust, some are non-tax reasons The non-tax reasons for creating the dynasty trust vary depending upon the needs and desires of the trustmaker. Dynasty trusts can be created to provide creditor and “predator” protection for the beneficiaries of the trust, generation after generation. They can shield against… Read more »
What is a Dynasty Trust?
August 18, 2017Dynasty Planning and Dynasty Trusts You can utilize your Generation Skipping Transfer (GST) Tax exemption to plan for several generations and build enormous wealth. This type of planning is known as dynasty planning. One of the reasons Congress enacted the GST Tax is to curb the wealth-building effects of dynasty planning. The concept of dynasty… Read more »
What is a Grantor Deemed Owner Trust?
August 16, 2017Grantor Deemed Owner Trust or Beneficiary Deemed Owner Trust-Call it what you will A Grantor Deemed Owner Trust (GDOT) is an irrevocable trust that is treated differently for federal income tax purposes than for federal estate tax purposes. For estate tax purposes, any gifts you make to the GDOT will be treated as completed gifts,… Read more »
Gifting Annual Exclusion Amounts
August 14, 2017I’ve Created an Irrevocable Trust and am Interested in Gifting Annual Exclusion Amounts to Decrease my Taxable Estate, but I am Gifting in Disproportional Amounts for Each of the Children’s Families. Isn’t This Giving Unequal Amount to My Children? When considering the nuances of gifting annual exclusion amounts, many questions like this arise. According to… Read more »
Can the Irrevocable Life Insurance Trust Last Forever
August 10, 2017Depending upon state law, a life insurance trust can last as long as any other trust, including dynasty trusts. If the ILIT is a dynasty-type ILIT, it will be subject to generation-skipping transfer taxes as discussed in Chapter 4. However, your generation skipping transfer tax exemption can be applied against the amount contributed to the… Read more »
What Happens to the an Irrevocable Life Insurance Trust or ILIT When I Die?
August 08, 2017What about my ILIT when I die? At your death, the death benefits are payable to the ILIT, because the ILIT is not only the owner of the policy, it is also the beneficiary. The death benefits are then held and administered by the Trustee according to the ILIT’s specific terms. The trustee can use… Read more »
Can I Only Put Life Insurance in the Trust?
August 04, 2017Is Life Insurance the Only Thing I can Put in My Trust? Yes. Any asset can be placed in the ILIT. Sometimes an income producing asset is placed inside of an ILIT to provide an income stream from which to pay the premiums on the life insurance. This technique eliminates any further gifts by the… Read more »
Trustee of Irrevocable Life Insurance Trust ILIT -How to Choose one?
August 02, 2017Who Serves as Trustee of ILIT or Irrevocable Life Insurance Trust? In any Irrevocable Life Insurance Trust (ILIT) structure, a Trustee is selected. The trustee of irrevocable life insurance trust is the person or institution that is designated to manage and operate the trust. Often, the trustee is a family member or friend of the… Read more »
ILIT Useful for Anything Else Besides Keeping Insurance Proceeds Out of the Estate?
July 31, 2017ILIT Useful in Many Ways An Irrevocable Life Insurance Trust or ILIT is created to own and control a term or permanent life insurance policy or policies while the insured is alive. ILIT is useful to manage and distribute the proceeds that are paid out upon the insured’s death. The parties in an ILIT are… Read more »
How does an irrevocable life insurance trust work?
July 27, 2017Learn the ways to make an irrevocable life insurance trust work The steps to successfully establishing an Irrevocable Life Insurance Trust or ILIT include the following: Your advisors, including your attorney, help to design and create the ILIT. The trustee of the ILIT applies for an insurance policy on your life, or the lives of… Read more »
