VISION! ESTATE PLANNING
ESTATE DISCOUNTING DEVICES
QPRT - Qualified Personal Residence Trust
GRAT/GRUT - Grantor Retained Annuity/Unitrust
FLP - Family Limited Partnership
IDGT - Intentionally Defective Grantor Trust
PLANNED CHARITABLE GIVING
Want to change the world, fund a cause you are passionate about, or memorialize your family name? Potentially increase your own current and future income tax deductions, generate lifetime income, substantially reduce your estate tax liability, and avoid taxable gain on highly appreciated assets (real property, equities, a business interest, collectibles) by shifting those assets to a charitable trust with an ultimate charitable beneficiary.
Living trusts are the most common and familiar form of trust. They are used principally to avoid probate, establish power of attorney, appoint successor trustees and conservators, state medical directives, and manage and distribute assets upon the death or incapacity of the grantors. Living trusts are revocable, meaning they can be amended, modified, or updated in similar fashion to a will. For a trust to be effective it must be "funded." This means that to take effect, the title of assets you want to be controlled by the trust must bear the title of the trust. It is not uncommon for trust grantors and drafters to miss this essential step when trusts are created, making the trust of no effect over grantors' assets.
ILIT (IRREVOCABLE LIFE INSURANCE TRUST)
Keep life insurance, intended to pay your estate taxes, out of your taxable estate!
Life insurance proceeds are generally income tax free, but they are added to the value of all the other assets in your estate for purposes of calculating your estate tax liability if you retain any "incidents of ownership." An ILIT, when properly executed and funded, can help avoid this potential tax trap and conserve the life insurance proceeds for the full benefit to your heirs as intended.