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Category Archives: Trust Planning

20180802

Provide for family members with special needs using an SNT

By Legacy Protection, LLP |

If you have a child or other family member with a disabling condition that requires long-term care or prevents (or will prevent) him or her from being able to support him- or herself, consider establishing a special needs trust (SNT). Also known as a supplemental needs trust, an SNT allows you to enhance a… Read More »

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20180628

The BDIT: A trust with a twist

By Legacy Protection, LLP |

The beneficiary defective inheritor’s trust (BDIT) allows you to enjoy the benefits of a traditional trust without giving up control over your property. BDITs can hold a variety of assets, but they’re particularly effective for assets that have significant appreciation potential or that may be entitled to substantial valuation discounts, such as interests in… Read More »

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20180621

A SLAT offers estate planning benefits and acts as a financial backup plan

By Legacy Protection, LLP |

The most effective estate planning strategies often involve the use of irrevocable trusts. But what if you’re uncomfortable placing your assets beyond your control? What happens if your financial fortunes take a turn for the worse after you’ve irrevocably transferred a sizable portion of your wealth? If your marriage is strong, a spousal lifetime… Read More »

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20180607

The pros and cons of a SCIN

By Legacy Protection, LLP |

Many estate planning techniques are intended to minimize or even eliminate gift and estate taxes when transferring assets to family members. Sometimes, the most powerful techniques also have a significant drawback: mortality risk. For example, you may have to outlive the term of a trust to realize its tax benefits. A self-canceling installment note… Read More »

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20180531_1

Naming a minor as beneficiary of a life insurance policy or retirement plan can lead to unintended outcomes

By Legacy Protection, LLP |

A common estate planning mistake is to designate a minor as beneficiary — or contingent beneficiary — of a life insurance policy or retirement plan. While making your young child the beneficiary of such assets may seem like an excellent way to provide for him or her in the case of your untimely death,… Read More »

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20180524

Use the proper tools to fix a broken trust

By Legacy Protection, LLP |

An irrevocable trust has long been a key component of many estate plans. But what if it no longer serves your purposes? Is it too late to change it? Depending on applicable state law, you may have options to fix a “broken” trust. How trusts break There are several reasons a trust can break,… Read More »

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20180503

Provide for your spouse, then your kids, with a QTIP trust

By Legacy Protection, LLP |

If you want to preserve as much wealth as possible for your children, but you leave property to your spouse outright, there’s no guarantee your objective will be met. This may be a concern if your spouse has poor money management skills or if you two don’t see eye to eye on how assets… Read More »

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20180405-Website

A total return unitrust can help maintain family harmony

By Legacy Protection, LLP |

A traditional trust can sometimes create a conflict between the lifetime and remainder beneficiaries. For example, investment strategies that provide growth that benefits remainder beneficiaries can leave lifetime beneficiaries with little or no annual payouts. This makes it more difficult for your estate plan to achieve your objectives and places your trustee in a… Read More »

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20180308

Keeping a trust a secret could violate state law

By Legacy Protection, LLP |

If your estate plan includes one or more trusts, you may have a good reason for wanting to keep them a secret. For example, you may be concerned that, if your children or other beneficiaries knew about the trust, they might spend recklessly or neglect educational or career pursuits. Despite your good intentions, however,… Read More »

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20180208

Only certain trusts can own S corporation stock

By Legacy Protection, LLP |

S corporations must comply with several strict requirements or risk losing their tax-advantaged status. Among other things, they can have no more than 100 shareholders, can have no more than one class of stock and are permitted to have only certain types of shareholders. In an estate planning context, it’s critical that any trusts… Read More »

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