Revocable trusts are not practical trusts for asset protection since they provide very little defense from creditors or other litigation. The irrevocable trust is a better tool for asset protection since you transfer the assets into the trust and give up control. In the revocable trust, the grantor still has control of the assets, thus making them vulnerable.
With Simple Trusts, two of the primary rules are no charitable beneficiaries and corpus must remain in the trust.
For 2013, the maximum estate tax rate is 40%.
"Income in respect of a decedent" is unexpected income paid to a beneficiary after the death of the owner, and it is included on the beneficiary's tax return. Withdrawals from traditional IRAs are typically fully taxable (unless a portion of the IRA was after-tax contributions). Section 179 is a one-time deduction for capital assets.
Loss of control (ownership) is a requirement when assets are re-titled to irrevocable trusts.
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Managing WealthEverything you always wanted to know about setting up trusts, in handy glossary form.
Managing WealthA revocable trust is a legal arrangement whereby a grantor transfers property to a trustee who holds the property in trust for the grantor’s benefit.
InvestingThis arrangement allows you to have more control over your estate - both before and after your death.
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RetirementA guide to the whys and wherefores of setting up this most versatile of estate-planning instruments in the United Kingdom.