Is there such a thing as a spendthrift trust?
No, not all heirs should be treated the same. For the less responsible offspring, there is the spendthrift trust. Initially, people created spendthrift trusts to manage the transfer of wealth in a way that gave the settlor peace of mind.
Can a charitable trust be included in an estate plan?
A charitable trust can also be incorporated into a standard trust, so that the trustor’s heirs receive part of the estate and the charity receives the remainder. Along with a trust, your estate plan should include a power of attorney (POA). A Totten trust is also called a payable-on-death account.
What do I need to know about a Totten trust?
Along with a trust, your estate plan should include a power of attorney (POA). A Totten trust is also called a payable-on-death account. You deposit money in a bank account or other security, and name a beneficiary for the account who will inherit the funds upon your death.
What happens to the money in a QTIP trust?
A common approach is to allocate income from the trust to your spouse upon your death and then to your children when your spouse dies. A QTIP trust restricts your spouse from accessing the full principal amount of the assets, but rather allows them to access income from your trust for the remainder of their lifetime.
What do you need to know about a spendthrift trust?
Get help from a lawyer to craft a spendthrift trust. The lawyer will ask you detailed questions to make sure a spendthrift is right for you and to find out what you want to accomplish with the trust. In addition to deciding what role you want the trustee to play (see above), you may also need to consider: When and how do you want the trust to end?
When did Grandma put the land in a trust?
This property was placed in a trust for Grandma’s benefit until her death in 2013 when the land was worth $5 million. Under the terms of the trust, the land is then distributed to the grandchildren, and they sell it for $5 million.
How much did Grandma sell her land for?
Under the terms of the trust, the land is then distributed to the grandchildren, and they sell it for $5 million. Even though it was worth $5 million when Grandma died, the grandchildren have to use the $50,000 cost basis since this land was not included in Grandma’s estate.
What happens when farmland is sold in a trust?
The Sale of Farmland (or Other Business Assets) Placed in Trusts : Articles : Resources : CLA (CliftonLarsonAllen) A person inheriting a farm naturally assumes they will receive a step-up in basis to fair market value which would allow them to sell the land for little or no gain. However, these heirs may get an unpleasant surprise.