HOW TO MANAGE A TRUST

Size: px
Start display at page:

Download "HOW TO MANAGE A TRUST"

Transcription

1 HOW TO MANAGE A TRUST Prepared by: THE LAW OFFICE OF WILLIAM J. BRISK 1340 Centre Street, Suite 205 Newton Center, MA (617) PREFACE This very simple memo is designed to introduce two classes of people (clients about to create a Trust and the persons they are thinking of appointing as Trustees) to the basics of maintaining a Trust. Trusts are a special creature of Anglo-American law which allows individuals to protect assets for their own use or the use of later beneficiaries. Typically, a Donor or Grantor executes a Trust which is to be managed by a Trustee in the interests of Beneficiaries. Until the past fifty years, most Trusts were managed by professionals, often specialists working in the Trust departments of banks, whose tasks involved the four principal functions of Trust administration: investment tax planning and reporting accounting to beneficiaries distribution of assets Because banks generally eschew Trusts with less than $500,000 of assets, charge significant fees, do not always produce good investment results, and sometimes are excessively rigid in exercising their discretion, an increasing number of Trusts are managed by nonprofessionals. Often family members or close friends, non-professional Trustees have several virtues: they are likely to know the beneficiaries and can exercise discretion along lines the donors would applaud and they charge very little or nothing for their services. Unlike institutions, they are, however, mortal, so a significant issue in preparing any Trust for non-professional management is to assure orderly succession in case the original Trustees lose interest, lose capacity, or die. Sharing this memorandum with potential Trustees will help them to decide whether to serve and, even more important, may help them carry out their responsibilities without great strain or risk. TYPES OF TRUSTS: Despite the arcane vocabulary in which many of them are written, most Trusts are fairly simple. They give legal ownership over specified assets to a Trustee who is expected to be prudent in managing the assets, investing for a fair return without great risk, and distributing income and principal to the beneficiaries as the Trust dictates.

2 There are dozens of types of Trusts, but the ones with which we are most involved are the following: Marital Trusts often revocable and sometimes even testamentary (i.e. existing within one s Will) they make income available to a surviving spouse without subjecting their principal to estate taxes when the survivor dies. Real Estate Trusts used to hold real estate, often for several generations. Even simple Real Estate Trusts should include directions and authorities to rent, sell, mortgage, and maintain the property. Additional complexities arise when tax, environmental, and long-term family usage are considered. Irrevocable Insurance Trusts protect life insurance proceeds from estate taxes and are, therefore, prime tools for relatively painless estate planning. Special Needs or Supplemental Needs Trusts provide income and even some principal to persons who are disabled without their losing rights to SSI and public health insurance benefits. Income Trusts vehicles for managing assets for individuals who may not want to or may not be able to manage themselves. Such Trusts may in effect serve as the money manager. If irrevocable, such Trusts may serve estate planning purposes. REVOCABLE TRUSTS Individuals who create and fund Revocable Trusts reserve the right to amend or terminate them without any penalty. Even Revocable Trusts become irrevocable, however, when their creators die. In many Revocable Trusts (termed Grantor Trusts ) the Grantor/Donor is also the Trustee and the lifetime Beneficiary. Assets held in Revocable Trusts avoid probate. Revocable Trusts also provide asset management after the owner becomes incapacitated or simply chooses to let his or her Trustee manage the Trust s assets. Marital Trusts, which can double the amount which can be excluded from a couple s taxable estate, are often revocable as well. While standard Revocable Trusts do not typically provide additional tax advantages and do not shield assets from eligibility determinations when one seeks public assistance such as Medicaid, they provide maximum flexibility and minimize tax accounting. Since the IRS treats nearly all Revocable Trusts as Grantor Trusts, any income received by the Trust (usually in the form of interest and dividends) is treated as if it went directly to the Grantor, obviating the need for a separate tax identification number and, more important, separate tax filings for the Trust. Funding a Revocable Trust usually requires nothing more than changing the title of assets. For bank accounts, stocks and bonds held in a brokerage account, and most mutual funds, a meeting with the financial institution s representative should go smoothly if you present: a signed and notarized original copy of the Trust. The financial institution may want to copy it for its files, but should return the original. Note that the name of accounts and the current Trustees appear on the first page of your revocable Trust.

3 the Social Security Number of the Grantor identification and signatures of the Trustee or Trustees Since the principal purpose of Revocable Trusts is to avoid the publicity, cost, and time involved with probate, it is usually desirable to transfer as many as assets as possible to the Trust. We can provide a form which even transfers personal effects in your home to the Trust. IRREVOCABLE TRUSTS Appropriate Irrevocable Trusts provide maximum protection from creditors and are often motivated by appreciable tax savings. Such benefits must be weighed, however, against some burdens. Irrevocable Trusts: cannot be amended once they are created. cannot be terminated except as provided in the Trust itself. must have their own federal taxpayer identification number and may have to file their own income tax returns (called fiduciary tax returns) depending upon the amount and kind of income they produce. must be administered by a Trustee who is usually not the same person as the Trust s creator and, frequently, when discretion is granted in making distributions, an Independent Trustee must be appointed. INITIAL STEPS IN FUNDING AN IRREVOCABLE TRUST 1) Our office will obtain a tax ID number for your Trust, particularly if it is irrevocable. If it is revocable or until it is funded, the IRS will treat the Trust as a Grantor Trust which it views as a mere extension of the Donor, and therefore not a separate tax paying entity. In most cases, we should be able to provide you with that number, which is obtained from the IRS, within a week of your having signed the Trust. 2) You will want to fund the Trust. For most Trusts, funding occurs when the Donor deposits money into a checking account in the name of the Trust with the Trustee as the only signatory. Use the tax ID number to identify the Trust. Do not use your social security number or the Trustee s social security number. Some banks want to make copies of the Trust itself, so be sure to bring along an original of the Trust and, as a courtesy, a copy for the bank to keep in its files. 3) If the Trust is to hold life insurance policies, we can help you in purchasing or assigning existing insurance policies to the Trust.

4 4) If cash is to be used to create bank accounts in the name of the Trust, the Donor should draft checks payable to the Trustee, mentioning the Trust. You may transfer other assets (such as stock, a home, or mutual funds) by changing the title to such assets. For example: a bank may enable you to retitle an account, i.e. converting an account you own to one owned by the Trust, simply by assigning an existing account to the Trustee. Since most banks require not only the signature of the Trustee but also may want to file a copy of your Trust, we recommend that you or the Trustee (or both of you) bring to the bank an original of your Trust as well as a copy the bank may keep on file. Be absolutely certain that the new account names the Trustee and the Trust as owners and uses the Trust s new federal identifying number. Under no circumstances should you use your own or the Trustee s Social Security number. to transfer real estate to a Trust requires a Deed which we will prepare, you will sign, and we will record with the Registry of Deeds. to transfer stocks requires working with a transfer agent, a daunting prospect if several blocks of stock are to be transferred. We strongly recommend working with your stock broker to effect the changes. to transfer mutual funds requires completing particular forms which you should obtain even before the Trust is created. We will advise you on the transfer of such mutual funds and help you complete the assignment form at the same time you sign the Trust. 5) For most Irrevocable Trusts, you must comply with gift tax laws. In most cases, we will notify beneficiaries of their withdrawal rights in order to comply with the Crummey provisions which allow you to fund the Trust with up to $26,000 per beneficiary each year. 6) In order to take advantage of Crummey we recommend that you plan, each September, to contribute a gift to the Trust to cover taxes, administrative costs, and insurance premiums (if the trust owns insurance policies), providing sufficient time to go through the Crummey exercise. REGULAR MAINTENANCE The Trustee should receive an executed copy of the Trust and should keep that copy available whenever performing tasks as Trustee. Read the Trust carefully, particularly as to duties and obligations of the Trustee. Most of your duties involve investing the assets of the Trust, complying with tax laws, issuing annual accountings, and exercising judgment under the Trust in making distributions to the beneficiaries. Be prepared to perform the following functions on a regular basis: 1) Maintain a list (on Schedule A of your Trust) indicating the date and value of each contribution to the Trust. That record may be vital in calculating capital gains taxes and in distinguishing principal from income two of the most contentious issues which arise when Trust administration is scrutinized.

5 2) Make periodic payments, as required in the Trust, to each beneficiary. In some cases it may be possible to pay bills incurred by the beneficiary directly to the creditor or to pay (tuition bills, for example) directly. If periodic payments are to be made, good Trustees make them on a specific day of the month, to maintain consistency and (frankly) to avoid plaintive calls from a disappointed beneficiary. 3) Review your investment plan at least annually and, if at all possible, retain an investment advisor or at least a highly competent broker to advise you on yields, risks, and asset management strategies. If you are making investments on your own, you may want to read an article published over a decade ago on the Prudent Trustee Rule and how an investing Trustee paid for being ahead of his time. 4) Zealously maintain the separate identify of the Trust (which is imperative for the same reasons the trust was created), by keeping its records and finances entirely separate from anything else in which you are involved. Do not write a check from your own account to pay for any costs (including that of the tax preparer) of the Trust once it has been created. The Trust must pay its own costs, taxes, insurance premiums, etc. 5) Mark your calendar for each anniversary in which an annual report or accounting is due. We like to help Trustee-clients prepare at least their first accounting and tax filing. Afterwards, you may find it advisable to do your own work or you may want to consult an accountant or other professional. 6) In the case of Irrevocable Trusts, consult a tax professional each year, by no later than January, to prepare the Trust s annual tax returns which are likely to be due on April 15 for the previous year. Since Trusts pay taxes on their retained earnings at a higher rate than individuals, it is usually prudent to distribute all income to beneficiaries (who pay taxes at their regular rate). You may want to strategize on how best to make distributions well before the end of each year. If you have specific questions about maintaining the Trust or satisfying beneficiaries, consult the Trust first but, then, if any issues remain, contact our office. This article is offered for informational purposes only and should not be construed as legal advice. In drafting your estate documents we will take into consideration your particular circumstances and preferences and base our analysis on your needs and the current law. Before executing any documents, you should seek advice from our office or another qualified attorney. Changes in the law and your personal circumstances may significantly alter the strategies recommended.

IRREVOCABLE TRUSTS Memorandum to the Settlor and the Trustee

IRREVOCABLE TRUSTS Memorandum to the Settlor and the Trustee Memorandum to the Settlor and the Trustee by Layne T. Rushforth 1. GENERALLY This memorandum is for the settlor (creator) and the trustee (manager) of an irrevocable trust. There is a section for each

More information

Irrevocable Life Insurance Trust Checklist

Irrevocable Life Insurance Trust Checklist ESTATE PLANNING THE PRUDENTIAL INSURANCE COMPANY OF AMERICA Irrevocable Life Insurance Trust Checklist Transferring an Existing Policy or Purchasing a New Policy The following chart details the procedures

More information

Web: www.aldavlaw.com Blog: www.californiatrustestateandprobatelitigation.com FUNDING REVOCABLE TRUSTS

Web: www.aldavlaw.com Blog: www.californiatrustestateandprobatelitigation.com FUNDING REVOCABLE TRUSTS Web: www.aldavlaw.com Blog: www.californiatrustestateandprobatelitigation.com What it Means to Fund a Revocable Trust FUNDING REVOCABLE TRUSTS After an individual (the grantor also known as the settlor

More information

Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning

Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning SALES STRATEGY Guiding you through life. ESTATE PLANNING Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning The Concerns Many clients who are concerned about maximizing

More information

IRREVOCABLE TRUST CAUTION: The purposes of this memorandum are to assist you and the trustee of your irrevocable trust in:

IRREVOCABLE TRUST CAUTION: The purposes of this memorandum are to assist you and the trustee of your irrevocable trust in: CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website is intended

More information

IRREVOCABLE LIFE INSURANCE TRUST CAUTION:

IRREVOCABLE LIFE INSURANCE TRUST CAUTION: CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website is intended

More information

REVOCABLE LIVING TRUST

REVOCABLE LIVING TRUST CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH, SUITE 600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website

More information

The Revocable Trust in Florida

The Revocable Trust in Florida The Revocable Trust in Florida The revocable, or living, trust is often promoted as a means of avoiding probate and saving taxes at death. The revocable trust has certain advantages over a traditional

More information

BUILDING FLEXIBILITY INTO THE TYPICAL IRREVOCABLE LIFE INSURANCE TRUST

BUILDING FLEXIBILITY INTO THE TYPICAL IRREVOCABLE LIFE INSURANCE TRUST BUILDING FLEXIBILITY INTO THE TYPICAL IRREVOCABLE LIFE INSURANCE TRUST Presented to the Kentucky Society of Certified Public Accountants, 48 th Annual Kentucky Institute on Federal Taxation, November 18,

More information

Irrevocable Life Insurance Trust

Irrevocable Life Insurance Trust What exactly is an ILIT? An ILIT, like most trusts, is simply a holding device. It owns your life insurance policy for you, removing it from your estate. As its name suggests, the ILIT is irrevocable.

More information

Advanced Markets Estate Planning for Non-Citizens in the United States

Advanced Markets Estate Planning for Non-Citizens in the United States Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUSTS: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United States (U.S.),

More information

The. Estate Planner. Should your life insurance be in an FLP? Special needs require a special needs trust. An estate planning strategy for your heirs

The. Estate Planner. Should your life insurance be in an FLP? Special needs require a special needs trust. An estate planning strategy for your heirs The Estate Planner July/August 2008 Should your life insurance be in an FLP? Special needs require a special needs trust The inheritor s trust An estate planning strategy for your heirs Estate Planning

More information

IRREVOCABLE LIFE INSURANCE TRUST OPERATING GUIDE

IRREVOCABLE LIFE INSURANCE TRUST OPERATING GUIDE IRREVOCABLE LIFE INSURANCE TRUST OPERATING GUIDE Law Office of Robert J. Mondo P.O. Box 72668 Roselle, Illinois 60172 (630) 215-3676 Fax (630) 894-8860 E-mail: bob@lawrjm.com Website: www.lawrjm.com This

More information

Sales Strategy Planning for Special Needs

Sales Strategy Planning for Special Needs Although the unique care of a family member with special needs can often be a significant concern for clients, the task of planning for a high level of ongoing support and funding may be daunting enough

More information

MORELLA & ASSOCIATES A Professional Corporation 706 Rochester Road Pittsburgh, PA 15237 (412) 369-9696 Fax (412) 369-9990 http://www.morellalaw.

MORELLA & ASSOCIATES A Professional Corporation 706 Rochester Road Pittsburgh, PA 15237 (412) 369-9696 Fax (412) 369-9990 http://www.morellalaw. MORELLA & ASSOCIATES A Professional Corporation 706 Rochester Road Pittsburgh, PA 15237 (412) 369-9696 Fax (412) 369-9990 http://www.morellalaw.com ESTATE PLANNING What is Estate Planning? Estate Planning

More information

HERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR MARRIED COUPLES 2015 (New York)

HERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR MARRIED COUPLES 2015 (New York) HERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR MARRIED COUPLES 2015 (New York) I. Purposes of Estate Planning. II. A. Providing for the distribution and management of your assets after your death.

More information

MEDICAID ASSET PROTECTION TRUST IRREVOCABLE INCOME ONLY TRUST

MEDICAID ASSET PROTECTION TRUST IRREVOCABLE INCOME ONLY TRUST MEDICAID ASSET PROTECTION TRUST IRREVOCABLE INCOME ONLY TRUST Amy S. O Connor McNamee, Lochner, Titus & Williams, P.C. 677 Broadway Albany, NY 12207 518 447 3335 oconnor@mltw.com BENEFITS OF IRREVOCABLE

More information

Sales Strategy Estate Planning for Non-Citizens in the United States

Sales Strategy Estate Planning for Non-Citizens in the United States Sales Strategy Estate Planning for Non-Citizens in the United States SINGLE LIFE SPOUSAL ACCESS TRUST: A LIFE INSURANCE ALTERNATIVE As large numbers of people from other countries settle in the United

More information

10 Rules of Thumb for Trust Income Taxation Presented by Adam Scott

10 Rules of Thumb for Trust Income Taxation Presented by Adam Scott 10 Rules of Thumb for Trust Income Taxation Presented by Adam Scott Rule #1: When in doubt, refer to the trust document; an investment policy for a trust cannot be created without it. One advantage of

More information

Revocable Trusts WHAT IS A REVOCABLE TRUST?

Revocable Trusts WHAT IS A REVOCABLE TRUST? Revocable Trusts The Revocable Trust (often referred to as a Living Trust ) is a popular and effective estate planning technique used throughout the United States. Its advantages (and disadvantages) should

More information

IDENTIFYING THE RIGHT TRUST FOR YOUR SITUATION PLAN FOR TOMORROW, TODAY

IDENTIFYING THE RIGHT TRUST FOR YOUR SITUATION PLAN FOR TOMORROW, TODAY IDENTIFYING THE RIGHT TRUST FOR YOUR SITUATION PLAN FOR TOMORROW, TODAY Life s ups and downs make it difficult to predict the future. Your family, your health, your career may all look fine today, but

More information

Estate Planning Basics. An Overview of the Estate Planning Process

Estate Planning Basics. An Overview of the Estate Planning Process Estate Planning Basics An Overview of the Estate Planning Process What Is an Estate Plan? An estate plan is a map This map reflects the way you want your personal and financial affairs to be handled in

More information

Protecting Life Insurance Proceeds: An Irrevocable Life Insurance Trust Review

Protecting Life Insurance Proceeds: An Irrevocable Life Insurance Trust Review Protecting Life Insurance Proceeds: An Irrevocable Life Insurance Trust Review Are you aware that an irrevocable life insurance trust can be used to remove life insurance proceeds from your taxable estate,

More information

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency Understanding Trusts A Summary of Trusts for Estate Planning No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 6/13 23171-13A Contents What

More information

KURT D. PANOUSES, P.A. ATTORNEYS AND COUNSELORS AT LAW 310 Fifth Avenue Indialantic, FL 32903 (321) 729-9455 FAX: (321) 768-2655

KURT D. PANOUSES, P.A. ATTORNEYS AND COUNSELORS AT LAW 310 Fifth Avenue Indialantic, FL 32903 (321) 729-9455 FAX: (321) 768-2655 KURT D. PANOUSES, P.A. ATTORNEYS AND COUNSELORS AT LAW 310 Fifth Avenue Indialantic, FL 32903 (321) 729-9455 FAX: (321) 768-2655 Kurt D. Panouses is Board Certified by the Florida Bar as a Specialist in

More information

Robert J. Ross 1622 W. Colonial Parkway, Suite 201 (847) 358-5757 Inverness, Illinois 60067 Fax (847) 358-7088 Bob@RobertJRoss.com

Robert J. Ross 1622 W. Colonial Parkway, Suite 201 (847) 358-5757 Inverness, Illinois 60067 Fax (847) 358-7088 Bob@RobertJRoss.com Law Offices of Robert J. Ross 1622 W. Colonial Parkway, Suite 201 (847) 358-5757 Inverness, Illinois 60067 Fax (847) 358-7088 Bob@RobertJRoss.com ESTATE PLANNING Estate planning is more than simply signing

More information

Life Insurance and Estate Planning for Retirement Plans

Life Insurance and Estate Planning for Retirement Plans Reynolds Financial Group LLC A Registered Investment Advisory Firm 216 Chaucer Drive Irwin, PA 15642 724-863-5005 Phone 724-863-8031 Fax wendyl@reynoldsfinancialgroup.net Life Insurance and Estate Planning

More information

EVERYTHING YOU OWN & EVERYONE YOU CARE ABOUT. An Estate Planning Primer

EVERYTHING YOU OWN & EVERYONE YOU CARE ABOUT. An Estate Planning Primer EVERYTHING YOU OWN & EVERYONE YOU CARE ABOUT An Estate Planning Primer For The Clients Of 7350 Cirque Drive W, Suite 201 University Place, WA 98467 (253) 759 8354 www.ppatpa.com Presented By T. Gary Connett

More information

Irrevocable Life Insurance Trusts

Irrevocable Life Insurance Trusts Irrevocable Life Insurance Trusts Producer Guide 1 Irrevocable Life Insurance Trusts For producer use only. Not for distribution to the public. An In-Depth Look at the ILIT An irrevocable life insurance

More information

IRREVOCABLE LIFE INSURANCE TRUST (FOR SURVIVORSHIP LIFE/SECOND-TO-DIE POLICY)

IRREVOCABLE LIFE INSURANCE TRUST (FOR SURVIVORSHIP LIFE/SECOND-TO-DIE POLICY) IRREVOCABLE LIFE INSURANCE TRUST (FOR SURVIVORSHIP LIFE/SECOND-TO-DIE POLICY) FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION. Specimen documents are made available for educational purposes

More information

Grantor Retained Annuity Trusts

Grantor Retained Annuity Trusts Grantor Retained Annuity Trusts A GRAT may allow a person to share the future appreciation of an asset with the next generation with no gift tax. Executive Overview Transferring wealth can be a significant

More information

Funding Options. Life Insurance:

Funding Options. Life Insurance: Living Trusts There are several disadvantages of wills. Wills go through probate and probate can be expensive. It can cause lengthy delays in the distribution of property to your heirs. Your will is open

More information

What is a Joint Tenancy? What is a Tenancy in Common? How is a Joint Tenancy Created, and What Property Can Be So Held?

What is a Joint Tenancy? What is a Tenancy in Common? How is a Joint Tenancy Created, and What Property Can Be So Held? joint tenancy What is a Joint Tenancy? Joint tenancy is a form of ownership by two or more individuals together. It differs from other types of co-ownership in that the surviving joint tenant immediately

More information

ABILITY TO TRANSFER "S" CORPORATION STOCK TO INTER VIVOS TRUSTS (Business Advisory No. 10)

ABILITY TO TRANSFER S CORPORATION STOCK TO INTER VIVOS TRUSTS (Business Advisory No. 10) ABILITY TO TRANSFER "S" CORPORATION STOCK TO INTER VIVOS TRUSTS (Business Advisory No. 10) Over the years, we have found that many of our clients elect to transfer their shares of "S" corporation stock

More information

Estate Planning Basics

Estate Planning Basics Estate Planning and issues involved The Basics Presented by: MARK HOLZGANG Understanding the tax issues and administrative issues involved. Estate Planning Basics for your Practice and Life Why? Estate

More information

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution.

The New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution. The New Era of Wealth Transfer Planning #1 American Taxpayer Relief Act Boosts Life Insurance For agent use only. Not for public distribution. In January 2013 Congress stepped back from the fiscal cliff

More information

Irrevocable Life Insurance Trust

Irrevocable Life Insurance Trust Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Irrevocable Life Insurance Trust Page 1 of 9, see disclaimer on final page Irrevocable

More information

Chapin Law Firm, LLC 11212 Johnson Dr. Shawnee, Kansas 66203 www.chapinlawfirm.com Phone: 913-385-0600 Fax: 913-385-0613

Chapin Law Firm, LLC 11212 Johnson Dr. Shawnee, Kansas 66203 www.chapinlawfirm.com Phone: 913-385-0600 Fax: 913-385-0613 Chapin Law Firm, LLC 11212 Johnson Dr. Shawnee, Kansas 66203 www.chapinlawfirm.com Phone: 913-385-0600 Fax: 913-385-0613 Thank you for contacting the Chapin Law Firm, LLC regarding estate planning information

More information

Consumer s Guide to. Estate Planning. Planning for Your Family Tree. www.littmankrooks.com. A Publication of

Consumer s Guide to. Estate Planning. Planning for Your Family Tree. www.littmankrooks.com. A Publication of Consumer s Guide to Estate Planning Planning for Your Family Tree www.littmankrooks.com A Publication of Elder Law, Estate Planning, Special Needs Planning 655 Third Ave. 399 Knollwood Rd. 21 Old Main

More information

UNDERSTANDING PROBATE. The Family Guide PREPARED BY ROBERT L. FERRIS

UNDERSTANDING PROBATE. The Family Guide PREPARED BY ROBERT L. FERRIS UNDERSTANDING PROBATE The Family Guide PREPARED BY ROBERT L. FERRIS I FIRST STEPS: WHAT TO DO 1. Obtain certified copies of the Death Certificate. When a person dies in California, an official Death Certificate

More information

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 I. Overview of federal, Connecticut, and New York estate and gift taxes. A. Federal 1. 40% tax rate. 2. Unlimited estate and gift tax

More information

TRUST SERVICES SERVICE LOYALTY HONESTY INTEGRITY

TRUST SERVICES SERVICE LOYALTY HONESTY INTEGRITY TRUST SERVICES SERVICE LOYALTY HONESTY INTEGRITY USAA TRUST SERVICES Your life and your legacy. Make sure it s managed to your wishes. You ve worked hard and carefully managed your finances. Now you have

More information

Planning your estate

Planning your estate Planning your estate A general guide to estate planning Policies issued by: American General Life Insurance Company The United States Life Insurance Company in the City of New York What is estate planning?

More information

BASICS * Irrevocable Life Insurance Trusts

BASICS * Irrevocable Life Insurance Trusts KAREN S. GERSTNER & ASSOCIATES, P.C. 5615 Kirby Drive, Suite 306 Houston, Texas 77005-2448 Telephone (713) 520-5205 Fax (713) 520-5235 www.gerstnerlaw.com BASICS * Irrevocable Life Insurance Trusts Synopsis

More information

Why you need an estate plan. Now. Make things easier for the people you love.

Why you need an estate plan. Now. Make things easier for the people you love. Why you need an estate plan. Now. Make things easier for the people you love. Eight questions it s best to answer now. No one can predict the future, but one thing is sure: If we leave unanswered questions

More information

Administration Of An Irrevocable Life Insurance Trust 1

Administration Of An Irrevocable Life Insurance Trust 1 Administration Of An Irrevocable Life Insurance Trust 1 If you are reading this memorandum that probably means that you have adopted an irrevocable life insurance trust (referred to as an ILIT in this

More information

Wealth Planning Insights

Wealth Planning Insights Wealth Planning Insights Wealth Management Consulting March 2014 Contents Create a safety net for your family with life insurance Pages 1 4 The loss of income due to the premature death could seriously

More information

CLIENT INSTRUCTIONS FOR IRREVOCABLE LIFE INSURANCE TRUSTS, ANNUAL EXCLUSION GIFTS & ADMINISTRATION

CLIENT INSTRUCTIONS FOR IRREVOCABLE LIFE INSURANCE TRUSTS, ANNUAL EXCLUSION GIFTS & ADMINISTRATION CLIENT INSTRUCTIONS FOR IRREVOCABLE LIFE INSURANCE TRUSTS, ANNUAL EXCLUSION GIFTS & ADMINISTRATION In General Life insurance ownership through an Irrevocable Life Insurance Trust ( ILIT ) can remove the

More information

Benefits Of An Irrevocable Life Insurance Trust

Benefits Of An Irrevocable Life Insurance Trust 1 Benefits Of An Irrevocable Life Insurance Trust CHAPTER OVERVIEW Life insurance is the only asset that Congress has bestowed with most favored tax status. 1 No other investment provides the potential

More information

Personal Trust Services

Personal Trust Services TIAA-CREF Trust Company, FSB Personal Trust Services Transfer assets to your heirs with confidence Many people assume trusts are only for the ultra-wealthy, but that is a misconception. Simply defined,

More information

THE IRREVOCABLE LIFE INSURANCE PRESERVATION TRUST HANDBOOK

THE IRREVOCABLE LIFE INSURANCE PRESERVATION TRUST HANDBOOK THE IRREVOCABLE LIFE INSURANCE PRESERVATION TRUST HANDBOOK This handbook is not to be used in lieu of appropriate legal advice. INSURANCE PRESERVATION TRUST HANDBOOK Page 1 IRREVOCABLE INSURANCE TRUST

More information

Taking Advantage of the New Gift and Estate Tax Law

Taking Advantage of the New Gift and Estate Tax Law product resource Taking Advantage of the New Gift and Estate Tax Law summary tra 2010 in brief Congressional debate about whether to extend tax cuts put into place during the Bush administration came to

More information

LIVING TRUSTS AND AVOIDING PROBATE

LIVING TRUSTS AND AVOIDING PROBATE SIUC Legal Clinic 104 Lesar Law Building Southern Illinois University at Carbondale Carbondale, Illinois 62901-6821 618-536-4423 618-536-7723 (FAX) 618-453-8727 LIVING TRUSTS AND AVOIDING PROBATE INTRODUCTION

More information

Topic: Washington Report 13-08 : Best Practices in Insurance Trust Administration are Critical to Preserve Planning Benefits.

Topic: Washington Report 13-08 : Best Practices in Insurance Trust Administration are Critical to Preserve Planning Benefits. The trusted source of actionable technical and marketplace knowledge for AALU members - the nation s most advanced life insurance professionals. The AALU Washington Report is published by AALUniversity,

More information

STEP-BY-STEP GUIDE TO THE PROBATE PROCESS

STEP-BY-STEP GUIDE TO THE PROBATE PROCESS STEP-BY-STEP GUIDE TO THE PROBATE PROCESS TABLE OF CONTENTS Probate Process Flowchart....................................................... 1 How To Determine Probate Assets.................................................

More information

KAROL HAUSMAN & SOSNIK, P.C. ATTORNEYS AND COUNSELORS AT LAW

KAROL HAUSMAN & SOSNIK, P.C. ATTORNEYS AND COUNSELORS AT LAW KAROL HAUSMAN & SOSNIK, P.C. ATTORNEYS AND COUNSELORS AT LAW 600 Old Country Road Garden City, New York 11530 Tel: (516) 745-0066 Fax: (516) 222-1499 E-Mail: KHS@KHSPC.com Counsel LOUIS P. KAROL MARC ALHONTE

More information

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning Permanent life insurance is not just about death benefits. It s an essential tool in estate, business succession, and

More information

IRREVOCABLE TRUST Questions and Answers

IRREVOCABLE TRUST Questions and Answers 1. Can Ascensus Trust handle trusts for individuals? Yes, through an Irrevocable Trust using life insurance as the sole funding vehicle. 2. Can proceeds be paid to beneficiaries in installments? Yes, The

More information

IS A TRUST RIGHT FOR YOU?

IS A TRUST RIGHT FOR YOU? : IS A TRUST RIGHT FOR YOU? You take care of your family and work hard for the things you ve acquired. You take the necessary steps during life to ensure your family s security and well-being and to avoid

More information

The. Estate Planner. Pension payouts: What s the best option? Take care of a loved one who has special needs with an SNT. Shopping for tax savings

The. Estate Planner. Pension payouts: What s the best option? Take care of a loved one who has special needs with an SNT. Shopping for tax savings The Estate Planner September/October 2011 Pension payouts: What s the best option? Take care of a loved one who has special needs with an SNT Shopping for tax savings Relocating a trust to a tax-friendly

More information

ARTICLE I USE OF TRUST ESTATE

ARTICLE I USE OF TRUST ESTATE Estate Planning IRREVOCABLE LIFE INSURANCE TRUST (FOR A ONE-LIFE POLICY) For Attorney Use Only. This specimen form may be given to the client's attorney for consideration when requested. It is not adapted

More information

DURABLE POWER OF ATTORNEY FOR FINANCES NOTICE

DURABLE POWER OF ATTORNEY FOR FINANCES NOTICE DURABLE POWER OF ATTORNEY FOR FINANCES NOTICE 1. This is an important legal document. By signing it, you are voluntarily giving another individual broad powers to handle your property and finances. 2.

More information

The Value of Using Irrevocable Trusts in Medicaid Planning

The Value of Using Irrevocable Trusts in Medicaid Planning THE LAW OFFICE OF JEFFREY M. JANEIRO, P.L. 5621 STRAND BLVD., SUITE 101 NAPLES, FLORIDA 34110 TEL. (239)-513-2324 FAX. (239)-513-9580 www.janeirolaw.com The Value of Using Irrevocable Trusts in Medicaid

More information

Bypass Trust (also called B Trust or Credit Shelter Trust)

Bypass Trust (also called B Trust or Credit Shelter Trust) Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Bypass Trust (also called B Trust or Credit Shelter Trust) Page 1 of 9, see disclaimer

More information

Estates & Trusts. Rules. Release No. 13. Basic Wills. Durable. for Estates Irrevocable. Trusts Charitable. Trusts

Estates & Trusts. Rules. Release No. 13. Basic Wills. Durable. for Estates Irrevocable. Trusts Charitable. Trusts Durable Trusts Charitable Estates & Trusts Basic Wills for Estates Irrevocable Release No. 13 Statutes & LLCs & Rules Trusts ESTATES & TRUSTS FORMS MANUAL By Stanley Hagendorf and Wayne Hagendorf About

More information

Rising tuition for college education is a daunting

Rising tuition for college education is a daunting By Sharon L. Klein Paying for the (Grand) Kids College Know all the options and combinations thereof Rising tuition for college education is a daunting reality for many parents and grandparents. Even the

More information

Life Insurance Gifts: Planning Considerations

Life Insurance Gifts: Planning Considerations Life Insurance Gifts: Planning Considerations Gifts of life insurance are an additional option for charitable giving. While life insurance is not the answer to every financial planning and estate planning

More information

Special Needs Trust. What are special needs? What is a special needs trust? When is a special needs trust appropriate?

Special Needs Trust. What are special needs? What is a special needs trust? When is a special needs trust appropriate? Special Needs Trust THE PRUDENTIAL INSURANCE COMPANY OF AMERICA Parents and families of children with special needs face incredible tasks on a daily basis. Family life revolves around the child. 1 Throughout

More information

Gifts to The Ridhwan Foundation

Gifts to The Ridhwan Foundation Gifts to The Ridhwan Foundation The following is written with The Ridhwan Foundation as recipient of donations. The Ridhwan Foundation is a 501 (c) 3 charitable, non-profit US corporation and can receive

More information

TAKING CONTROL OF YOUR FUTURE THROUGH BASIC ESTATE PLANNING

TAKING CONTROL OF YOUR FUTURE THROUGH BASIC ESTATE PLANNING TAKING CONTROL OF YOUR FUTURE THROUGH BASIC ESTATE PLANNING Prepared by Emily S. Starr The Law Office of Ciota, Starr & Vander Linden LLP 625 Main Street Seven State Street Fitchburg, MA 01420 Worcester,

More information

IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1)

IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1) IRREVOCABLE LIFE INSURANCE TRUSTS FOR ESTATE AND TAX PLANNING (Estate Planning Advisory No. 1) This Advisory discusses the general estate planning and asset protection benefits of an irrevocable life insurance

More information

ATTORNEY IN FACT INSTRUCTIONS AND ACCOUNTING RECORDS

ATTORNEY IN FACT INSTRUCTIONS AND ACCOUNTING RECORDS ATTORNEY IN FACT INSTRUCTIONS AND ACCOUNTING RECORDS Prepared by The Evansville Bar Association Probate, Elder Law and Guardianship Section Katherine J. Rybak, Chair The attached instructions and accounting

More information

Durable Power of Attorney For Finances

Durable Power of Attorney For Finances Durable Power of Attorney For Finances Choosing Someone to Handle Your Property And Finances in Case of Disability Washtenaw County Probate Court Shared/Social/Resources/DPOA for Finances FOREWORD We all

More information

A Guide to Living Trusts

A Guide to Living Trusts A Guide to Living Trusts Protect your family s future with a plan The Smart Way to Avoid Probate Who s Who in a Living Trust Trust Anatomy 101 Types of Living Trusts What Goes into a Living Trust Assets

More information

Sales Strategy Sale to a Grantor Trust (SAGT)

Sales Strategy Sale to a Grantor Trust (SAGT) Estate planners have been using the Irrevocable Life Insurance Trust (ILIT) for many years, to increase wealth and liquidity outside the taxable estate. 1 However, transfers to ILITs One effective technique

More information

White Paper. Annuities As Trust Assets. Annuities. April, 2012. Your future. Made easier.

White Paper. Annuities As Trust Assets. Annuities. April, 2012. Your future. Made easier. White Paper Annuities As Trust Assets Annuities April, 2012 Your future. Made easier. TABLE OF CONTENTS 3 4 5 5 6 7 8 10 12 Trustees Legal Duties Who Are The Beneficiaries And When Do They Get Their Benefits?

More information

THE PRIMARY PURPOSE OF HAVING ASSETS IN YOUR TRUST

THE PRIMARY PURPOSE OF HAVING ASSETS IN YOUR TRUST The primary purpose of placing your assets into a Revocable Trust is to avoid the expense and delay of the probate process. Keep in mind that anything that you own in your name at the time of your death

More information

32 Types of Trusts. What Types of Trusts Do You Need. How Trusts are Taxed for Estate, Gift and Income Tax Purposes

32 Types of Trusts. What Types of Trusts Do You Need. How Trusts are Taxed for Estate, Gift and Income Tax Purposes 32 Types of Trusts What Types of Trusts Do You Need How Trusts are Taxed for Estate, Gift and Income Tax Purposes Kenneth R. Cohen, Esq. Davidson, Sochor, Ragsdale & Cohen, LLC 611 River Drive, Elmwood

More information

LIFE INSURANCE TRUSTS

LIFE INSURANCE TRUSTS LIFE INSURANCE TRUSTS Robert M. Mendell, JD, CPA* Robert M. Mendell, Attorney at Law, P.C. 908 Town & Country Blvd. Suite 120 Houston, Texas 77024 (713) 888-0700 Fax: (713) 888-0800 Email: rmendell@mendellgroup.com

More information

Overview of Different Types of Trusts

Overview of Different Types of Trusts Overview of Different Types of Trusts Living Trusts The living trust is very popular in America. A living trust helps you avoid the cost and delay of probate. You can also avoid the dangers from jointly

More information

Estate Planning. Chapter. In This Chapter. Survivorship Interests Payment on Death Accounts. Life Insurance

Estate Planning. Chapter. In This Chapter. Survivorship Interests Payment on Death Accounts. Life Insurance Estate Planning Your estate includes the assets and liabilities you will leave after you pass away. It is important to plan for how you want to pass your estate, including what you want to give away and

More information

The Basics of Estate Planning

The Basics of Estate Planning The Basics of Estate Planning A White Paper by Manning & Napier www.manning-napier.com Unless otherwise noted, all fi gures are based in USD. 1 The Basics of Estate Planning A White Paper by Manning &

More information

Living Trust Overview

Living Trust Overview Living Trust Overview TABLE OF CONTENTS WHAT IS PROBATE AND WHY DO YOU WANT TO AVOID IT? 2 THE HIGH COST OF DYING 2 A REVOCABLE LIVING TRUST ELIMINATES PROBATE 3 HOW A LIVING TRUST WORKS 3 REVOCABLE LIVING

More information

Insight on estate planning

Insight on estate planning Insight on estate planning june.july.2004 Irrevocable life insurance trusts 5 things you need to know about to save taxes Should a trust be the beneficiary of your retirement plan? Providing estate plan

More information

Irrevocable Life Insurance Trust (ILIT)

Irrevocable Life Insurance Trust (ILIT) THE WEALTH COUNSELOR LLC Irrevocable Life Insurance Trust (ILIT) What Is the Irrevocable Life Insurance Trust? An irrevocable trust is one in which the grantor completely gives up all rights in the property

More information

Wealth Structuring and Estate Planning. Your vision and your legacy. Life s better when we re connected

Wealth Structuring and Estate Planning. Your vision and your legacy. Life s better when we re connected Wealth Structuring and Estate Planning Your vision and your legacy Life s better when we re connected Inside 1 Helping you shape the future 2 The elements of wealth structuring 4 The power and flexibility

More information

Administrator. Any person to whom letters of administration have been issued to administer an intestate estate.

Administrator. Any person to whom letters of administration have been issued to administer an intestate estate. An Estate Planning Glossary The estate planning process is a complex one. During the course of your research into the firm to choose to handle your needs in administering your assets you will hear numerous

More information

Investment Objectives and Management

Investment Objectives and Management DISCLOSURE STATEMENT DESERET POOLED INCOME FUND The Corporation of the President of the Church of Jesus Christ of Latter-day Saints (the "Church") has created the Deseret Pooled Income Fund, (the "Fund")

More information

TRANSFERRING ASSETS TO YOUR REVOCABLE TRUST

TRANSFERRING ASSETS TO YOUR REVOCABLE TRUST F TOD F F TRANSFERRING ASSETS TO YOUR REVOCABLE TRUST As we discussed, you should take steps to transfer your assets to your Revocable Trust during your lifetime, to enhance its usefulness as a probate-avoidance

More information

Estate Tax Concepts. for Edward and Tina Collins

Estate Tax Concepts. for Edward and Tina Collins Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com

More information

Life Insurance and Estate Tax

Life Insurance and Estate Tax Kempson & Tschopp, LLC V Cullen Kempson, CFP Edmund D Tschopp, CFP 350 Sparta Ave - #B5 Sparta, NJ 07871 973-726-4600 Tel wwwktwealthgroupcom Life Insurance and Estate Tax Page 2 of 7 Life Insurance and

More information

CLIENT GUIDE. Advanced Markets. Estate Planning Client Guide

CLIENT GUIDE. Advanced Markets. Estate Planning Client Guide CLIENT GUIDE Advanced Markets Estate Planning Client Guide TABLE OF CONTENTS Why Create an Estate Plan?........................ 1 Basic Estate Planning Tools......................... 2 Funding an Irrevocable

More information

Advanced Estate Planning

Advanced Estate Planning Advanced Estate Planning October 7, 2014 Presented by Gregory E. Lambourne, Esq. Brown & Streza LLP Irvine, CA Review of Basic Estate Planning Health Care Directives Powers of Attorney The Probate Process

More information

What is Estate Planning?

What is Estate Planning? What is Estate Planning? Estate planning is one of the most important steps any person can take to make sure that their final property and health care wishes are honored, and that loved ones are provided

More information

Consumer Legal Guide. Your Guide to a Living Trust

Consumer Legal Guide. Your Guide to a Living Trust Consumer Legal Guide Your Guide to a Living Trust WHAT IS A LIVING TRUST? Most of us share the same objectives for our estate plan: 1) Provide for our spouse or dependent children; 2) distribute our property;

More information

Estate Planning. Some common tools used to help meet those particular needs include:

Estate Planning. Some common tools used to help meet those particular needs include: Estate Planning The Importance of Having an Estate Plan Having an estate plan is one of the most important things you can do for your family. It's not just about planning for estate taxes; it's about developing

More information

the Private Trust Company planning with confidence Simplified Trust Solutions

the Private Trust Company planning with confidence Simplified Trust Solutions the Private Trust Company planning with confidence Simplified Trust Solutions What is a Trust? As the nation s leading independent broker/dealer*, LPL Financial serves the independent financial advisor

More information

Split-Interest Charitable Giving Techniques in brief

Split-Interest Charitable Giving Techniques in brief Split-Interest Charitable Giving Techniques in brief Summary of Split-Interest Charitable Giving Techniques Charitable Remainder Trust Allows the donor to provide a gift to charity (i.e., the remainder

More information

Property Ownership, real Property Transfers, and Taxes

Property Ownership, real Property Transfers, and Taxes Property Ownership, real Property Transfers, and Taxes In This Chapter Section -1 Section -2 Section -3 types of Property ownership transferring Property basic tax Matters Chapter Find definitions for

More information

An Educational Guide for Individuals. Confidence in giving. Charitable Remainder Trust

An Educational Guide for Individuals. Confidence in giving. Charitable Remainder Trust An Educational Guide for Individuals Confidence in giving Charitable Remainder Trust Philanthropy in the United States is characteristic of the pride and unity of its citizens. In 2006 Americans gave an

More information