Which is part of a will contains a trust?
Except for very simple Wills just involving a small number of adult beneficiaries, most Wills contain some kind of trust. 3. This part of the Will sets out any gifts of specific items (“specific bequests”) or fixed cash sums (“pecuniary legacies”) to be made separately from the remainder of the estate. 4.
How does beneficent law apply to trust money?
(a) Power to invest trust money with the same full and unrestricted freedom in their choice of investments as if my trustees were a sole absolute beneficial owner thereof 7 (b) Power to insure against all usual risks any real or personal property comprised in my estate at any time for such sum as they shall think fit 8
What are the powers of a trust trustee?
6. I ALSO DECLARE that my trustees shall have the following powers in addition to their powers under the general law: (a) Power to invest trust money with the same full and unrestricted freedom in their choice of investments as if my trustees were a sole absolute beneficial owner thereof 7
How are technical clauses incorporated in a will?
Sometimes additional technical clauses and provisions which extend or vary the powers of the trustees will be incorporated into the Will by reference to a separate schedule of additional provisions, such as the Standard Provisions of the Society of Trust and Estate Practitioners (1st Edition).
How is a charitable remainder trust tax exempt?
A charitable remainder trust is a tax-exempt irrevocable trust designed to reduce the taxable income of individuals and support charities. An intentionally defective grantor trust (IDGT) is used to freeze certain assets of an individual for estate tax purposes, but not for income tax purposes.
How does a spendthrift clause work in a trust?
In general terms a Spendthrift clause prevents a beneficiary’s creditors from garnishing a present or future distribution from an estate prior to the beneficiary receiving it. In addition, a Spendthrift clause prevents the Beneficiary from transferring their interest to another (e.g. assigning their trust income to a creditor).
Who are the remainder beneficiaries in a trust?
Remainder or contingent beneficiaries have an interest in the trust after the current beneficiaries’ interest is over. For example, a wife may set up a trust that leaves income to her husband for life (the current beneficiary) and then the remainder of the property to her children (the remainder beneficiaries).
How does a trust help reduce estate and inheritance taxes?
Trusts can also help to reduce estate and inheritance taxes as well as avoid probate, which is the legal court process of distributing assets upon the death of the owner.