Archive for the ‘Trusts’ Category
QTIP Trusts and California’s Total Return Trust
A qualified terminable interest property trust (QTIP) is often included as a subtrust for a married couple. When combined with bypass subtrust that captures the amount of the first deceased spouse’s lifetime exemption, the QTIP allows the assets be used for the income benefit of the surviving spouse while preserving the principal for the [...]
Common Types of Trusts
Trusts fall into two categories; revocable and irrevocable. Revocable trusts are often called living trusts, and they can be canceled or revoked at any time. Irrevocable trusts are permanent, once created and funded they cannot be canceled or modified.
Revocable Living Trusts
These common trusts are normally used to avoid probate. [...]
Irrevocable Life Insurance Trusts - 5 Reasons
First - what is an Irrevocable Life Insurance Trust (ILIT)? This special type of trust is set up to keep life insurance proceeds out of the estate. But there are other benefits; a recent article on JD Supra by the attorney John C. Martin covered ILITs (Irrevocable Life Insurance Trusts) and described key [...]
Doubling your Estate Tax Exemption with an ABC Trust
You can use a trust in your estate planning for a variety of reasons, avoiding probate is usually the primary reason. But did you know you a married couple can double their estate tax exemption using a trust?
Consider a married couple with $5 million in assets. When the first of them passes away, the original [...]
Preparing for a Living Trust lawyer’s visit
So you’ve decided to execute a living trust - that’s good. Here are some things to consider before you visit an attorney to draw up the documents.
If you do not have dependent children the process is fairly simple. The lawyer will interview you to establish the successor trustees (who do you trust to [...]
Avoiding Probate with a Trust
If you haven’t heard yet - probate is difficult and expensive. Probate can take a year or more to settle with probate fees sometimes charged as a percentage of the assets. The standard estate plan seeks to avoid probate by establishing a living trust. A trust is usually drawn up by a lawyer, and has [...]