When creating a trust, an important distinction is whether the trust will be revocable or irrevocable. In fact, this determination can have broad-reaching tax consequences and legal ramifications. In many cases, a properly created irrevocable trust will offer the benefit of tax savings and protection from creditors. However, in order to benefit from an irrevocable… Read More »
Posts Categorized: Trust
Asset Protection Trusts: What are they and are they right for you?
An essential goal of estate planning is to protect the assets you have worked all of your life to build. This planning may need to include protecting your assets from creditors while making sure that you are still able to benefit from them. Fortunately, for Michigan residents, there is an estate planning option which offers… Read More »
Contesting a Trust
For some, creating a trust is a valuable and important piece of their financial and estate plans. By placing estate assets into a trust, the creator of the trust can be sure that their assets will be able to benefit certain specifically named trust beneficiaries. Ideally, the trust will have been created in a manner… Read More »
What is an Annuity Trust?
A goal of estate planning is to protect assets while minimizing taxation. For people who own income-producing assets, a Grantor Retained Annuity Trust, or GRAT can be an option for transferring wealth while still receiving income from those assets, and reducing taxes owed by their beneficiaries. What is a GRAT? A GRAT is an irrevocable… Read More »
What is a Michigan Domestic Asset Protection Trust?
A concern of anyone with creditors is that something may happen in their lives or to their business which will leave their personal assets depleted. Until recently, Michigan residents did not have many ways to protect themselves from such an occurrence. However, recently Michigan joined a growing number of states which allows domestic asset protection… Read More »
What is a Legacy Trust?
As people are preparing their estate plans, it is often the case they want to leave wealth to their loved ones. In some fortunate cases, the person has adequate resources in their estate to set up a trust which will benefit their family for generations to come. For people seeking to keep their assets in… Read More »
What Rights Does a Trust Beneficiary Have?
Beneficiaries of a trust sometimes do not know a great deal about the rules which apply to them. In many cases, a relative may be the person designated to administer and distribute the trust, but they too might be unclear on the trust details and rules. In these situations, beneficiaries may not be aware of… Read More »
What is a Grantor Retained Annuity Trust?
A Grantor Retained Annuity Trust, commonly called a GRAT, is a special type of irrevocable trust that minimizes the tax liability that usually accompanies intergenerational transfers of estate assets. Under a GRAT, an irrevocable trust is created for a certain term or period of time. The trust creator pays a tax when the trust is established. Assets are… Read More »
What is a Protective Trust?
“Protective trust” is actually an umbrella term that refers to various types of trusts that are put in place to protect a person’s estate and/or assets from taxation, bankruptcy, lawsuits, or other outside threats. The basic goal of a protective trust (also known as an asset-protection trust) is to ensure that trust income goes to the designated… Read More »
What is a Legacy Trust?
Also known as a dynasty trust or wealth trust, a legacy trust is an irrevocable trust that lets the trustor set aside assets for future generations. It is generally considered to be a flexible asset protection and saving option that allows one to use funds for emergency situations while building an estate to pass on… Read More »