Estate Tax Protection
Insurance, real estate, brokerage and bank accounts, and other personal
property can be transferred to your irrevocable trust to insulate the
assets in your trust from inclusion in your estate when determining estate
Capital Gains/Income Tax Protection
A Charitable Remainder Trust, for example, can sell appreciated assets
and not pay capital gains taxes. This type of trust can then pay an annual
annuity or a percentage of the principal back to you for the rest of your
life, and the remainder goes to the charity, while you receive a current
tax deduction for the contribution.
You may want to ensure that your real estate, business property, or liquid
investments are protected from the reach of creditors, frivolous lawsuits,
or divorce. An irrevocable trust can be designed to protect such assets
within the context of the laws of the jurisdiction in which it is created.
These kinds of trusts can be created for your benefit, and/or for the
benefit of your children.
In the next installment, we will be discussing special needs planning and
lifetime asset protection for elder care.
If you are looking for asset protection in any of these categories, feel
free to contact us at (203) 651-5521.