SPECIAL CONSIDERATION – PROTECTION OF YOUR HOME
For individuals 75 years or older or those under that age that have a medical diagnosis, consideration should be given to taking steps to protect the home. This is usually a family’s most valuable asset. The usual technique for accomplishing this objective is to establish a Trust for the benefit of the intended beneficiaries of…
TRUST INCOME TAX CONSIDERATIONS PART 2
Grantor Trust Basic Rules – I.R.C. §673-678 673 Reversionary Interest – Not usually helpful. 674 Power to Affect Beneficial Enjoyment – Power of disposition in Grantor or non-adverse party to affect beneficial enjoyment of corpus or income. 675 Retained Administrative Power Right to Reacquire or Substitute Property of Equal Value – Be careful with Medicaid…
WHY AND HOW TO USE A TRUST PROTECTOR
by Thomas D. Begley, Jr. Esquire, CELA What is a Trust Protector? When drafting a Trust-particularly an irrevocable trust or a revocable trust that becomes irrevocable upon the Grantor’s death-it is essential to build in mechanisms that allow for future flexibility. Without someone empowered to make certain changes, the Trustee or Beneficiary of an…
TRUST INCOME TAX CONSIDERATIONS PART 1
General How important is control? Who is in the lower income tax bracket – Grantor, Beneficiary, or Trust? What are the Medicaid considerations? Definitions Carryover Basis – Recipient’s basis is the same as the original basis of the Grantor making the gifts. Step-Up in Basis – Recipient’s basis is the fair market value on the…