Of GRATs and GRUTs; trusts offer benefits linked to interest rates

Article Abstract:

Well-planned grantor retained annuity trusts (GRATs) or grantor retained unitrusts (GRUTs) can save significant amounts of taxes. Both GRATs and GRUTs assign remainder interests in trusts to children or other family members while the grantor retains the right to a fixed annual percentage of the value of the trust during its existence. When the trust is established, the remainder interest is taxable as a gift. The advantages include the downsizing of the grantor's estate by the amount of the gift tax and by the removal of part of the future appreciation.

Methods, Innovations, Estate planning

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Safe harbors; offshore trusts offer asset protections

Article Abstract:

People who want to protect their assets from the recession, might want to consider using an offshore asset-protection trust. Assets can be insulated from damage awards and settlements and, possibly, from creditors. Foreign countries that as a rule do not recognize US judgments or help collect US tax deficiencies are where these trusts must be created. The trust is usually established for fixed terms, requires a minimum of one foreign trustee and the trust must be administered according to the law of the foreign country where the assets are.

Asset-liability management (Banking), Asset liability management (Banking)

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Island castaway

Article Abstract:

The offshore trust industry has become a popular estate planning tool for wealthy entrepreneurs, doctors and lawyers to protect their funds, but there are growing concerns about the use of such trusts to hide money from divorced spouses and other legitimate creditors. The goal of so-called asset protection trusts is to shield wealth my moving it to a foreign jurisdiction that does not recognize US judgments or other law. Trusts are usually set up to avoid or supplement prenuptial agreements, reduce assets and discourage lawsuits.

Divorce settlements, international, states

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