1. D

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.  

2. D

With Simple Trusts, two of the primary rules are no charitable beneficiaries and corpus must remain in the trust.

3. A

For 2013, the maximum estate tax rate is 40%.

4. C

"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.

5. B

Loss of control (ownership) is a requirement when assets are re-titled to irrevocable trusts.
 



Introduction

Related Articles
  1. Financial Advisor

    When to Trust a Revocable Trust

    Unsure 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.
  2. Retirement

    Pick The Perfect Trust

    Trusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter.
  3. Financial Advisor

    Advisors: Tips for When to Employ Living Trusts

    Revocable 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.
  4. Financial Advisor

    Irrevocable Trusts: New Trends You Need to Know

    Several improvements and additional provisions have been added to irrevocable trusts in recent years making them considerably more versatile than before.
  5. Financial Advisor

    Passing an IRA to a Trust: The Good and Bad

    Creating a trust is a common estate planning tactic, but naming a beneficiary to an IRA to a trust may have unintended consequences.
  6. Retirement

    Surprising Ways a Trust Could Help Your Family

    Everything you always wanted to know about setting up trusts, in handy glossary form.
  7. Retirement

    Understanding Revocable Trusts

    A 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.
  8. Retirement

    Establishing A Revocable Living Trust

    This arrangement allows you to have more control over your estate - both before and after your death.
  9. Retirement

    How To Set Up A Trust Fund In The U.K.

    A guide to the whys and wherefores of setting up this most versatile of estate-planning instruments in the United Kingdom.
  10. Retirement

    Designating A Trust As Retirement Beneficiary

    Designating a trust as your IRA beneficiary can be beneficial, but it requires proper planning to avoid problems.
Trading Center