Grantor may have powers over trust, yet not be subject to tax

Article Abstract:

A grantor can retain some control over the beneficial enjoyment of a trust without the result of grantor trust status and income taxable to the grantor. IRC 674(b) details these types of control. They include the allocation of income to pay a dependent's living expenses, decisions regarding enjoyment of the trust after a certain occurrence, testamentary powers, legal status to decide beneficial enjoyment by charitable beneficiaries, and legal status to distribute corpus. It follows that a well-drafted trust instrument can be a means of saving taxes.

---

Lapses of multiple five and five powers: gift tax options

Article Abstract:

The annual gift tax exclusions for trusts containing five and five powers can best be preserved by setting up separate trusts equaling the number of desired remaindermen. This way not more than one five and five power per trust could lapse, and the $10,000 annual exclusion would cover a single lapse favoring a single remainderman. This method keeps the IRS from combining the value of lapsed powers and depriving the income beneficiary of part of the benefit of the annual gift tax exclusion.

Tax exclusion, Gift tax

---

What are the implications when a lawyer serves as trustee?

Article Abstract:

The author discusses issues related to lawyers serving as fiduciaries, including variances in policies and practices, conflicts of interest, relevant expertise, and professional independence. Comments by financial planners, accountants, academics, and attorneys on the need for individual fiduciaries are analyzed.

United States, Analysis, Financial planners, Conflict of interests (Attorneys), Conflicts of interest (Lawyers), Fiduciary duties

Similar abstracts:

• Abstracts: What powers over a credit shelter trust can the spouse possess? Transferring a general partnership interest to a living trust
• Abstracts: Using charitable lead or remainder trusts for noncharitable purposes. Selected strategies for dealing with non-diversified wealth
• Abstracts: 1996 amendments to the Foreign Sovereign Immunities Act with respect to terrorist activities. The United States and the Statute of Rome
• Abstracts: Viagra may have legal downside; insurance breaches, side effects raise some concerns. Wal-Mart had memo on risks to shoppers; it wasn't disclosed in a suit over rape
• Abstracts: Franchisor liability for gender discrimination and sexual misconduct. Fair criticism, cyberlibel, and unlawful coordinated action over the Internet

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.