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.
Managing WealthOnly put your assets in an irrevocable trust for one of these three reasons.
Financial AdvisorUnsure of how your assets will be dispersed once you're gone? Here's how setting up a revocable trust while you're here can be a big benefit.
Financial AdvisorRevocable living trusts accomplish estate planning objectives that aren't possible with a will. Here are some of the cases that show when to use a trust.
Financial AdvisorSeveral improvements and additional provisions have been added to irrevocable trusts in recent years making them considerably more versatile than before.
InvestingThis arrangement allows you to have more control over your estate - both before and after your death.
InvestingLearn the basics of how a trust works and the two most common types. Discover how to use ETFs to fund a trust and the different strategies.
RetirementDesignating a trust as your IRA beneficiary can be beneficial, but it requires proper planning to avoid problems.
RetirementNo, they're not just for the super-rich. But you need to know the rules.