Why Trusts are created:

All Trusts are created to provide beneficiaries with income or principal (property). Property titled in a trust avoids probate. Trusts may be structured to:

  1. Protect the trust property from creditors and future ex-spouses of a beneficiary,
  2. Minimize or allocate tax load,
  3. Motivate a beneficiary to be productive, or refrain from destructive conduct,
  4. Assist a special needs beneficiary to qualify for state or federal benefits, or
  5. Prevent a beneficiary who is a spendthrift from becoming penniless.

Below is a list of trusts we assist in creating and administering:

  • Revocable trusts when they become irrevocable
  • Self-settled asset protection trusts (Nevada grantor beneficiary asset protection trusts)
  • Spousal Life Access Trusts (SLATS)
  • Grantor designated beneficiary IRA trusts
  • Life Insurance Trusts and Crummy Letters
  • Charitable remainder trusts (CRT)
  • Charitable uni-trusts (CRUT)
  • Qualified Terminal Interest Trusts for spouses and remainder beneficiaries (QTIP)
  • Generation Skip Transfer Trusts
  • Grantor Defective Trusts
  • Dynasty Trusts

Commonly used terms for trust

If you are not familiar with trusts, these brief definitions will help you understand and give you a working knowledge of the terminology revolving trusts. If you are familiar with trust, then a quick review may also help you.  The definitions herein should be read to give you a working knowledge of terms revolving trusts. While we believe they are good, they are not legal authority.

Some considerations when creating a trust:

  • Family or beneficiary dynamics (other than the main purpose of the trust, this the most important consideration).
  • Competencies and propensities of individuals designated to serve as trustees.
  • Difficulty of administration of the trust (odd requirements).
  • Property to be titled in the trust.
  • Tax load and allocations.
  • State trust is created and will be administered.
  • Setting a beneficiary up for an unintentional felony.
  • Violations of state and US Constitutions.
  • Titling of odd assets to the trust such as crypto currencies, oil and gas, collectibles, marijuana and gaming businesses.

The following are typical matters to be addressed in a trust administration:

  • Determining when a trust comes into existence.
  • Determining when trustee duties come into existence.
  • Marshalling (finding and controlling) and determining status of trust assets.
  • Determining status of beneficiaries.
  • Providing notice of existence and terms of the trust to beneficiaries.
  • Providing an inventory of trust property to beneficiaries.
  • Establishing and funding sub-trust that may be created under the trust terms.
  • Determining tax reporting requirements and payment of taxes such as estate and income taxes.
  • Obtaining tax identification numbers.
  • Determining creditors, if any, providing notice for opportunity to file claim, and payment of legitimate claims.
  • Providing an accounting of financial transactions during the administration at regularly required intervals, and sub-trusts if applicable.
  • Identifying and installing the Trustee.
  • Calculate and prepare plans of distributions to beneficiaries.
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