Reply to Irrevocable trust

Forum Index » Money and Finances

Reply to "Irrevocable trust"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If you have an irrevocable trust, how did you decide how much to transfer into it? What percentage of your NW did that represent? Thank you. [/quote]

My siblings and I are beneficiaries on a pair of irrevocable SLATs our parents set up for one another. Their goal was to fill each one to the maximum lifetime gift limit ($13.6M or so) and then let those assets grow in an estate tax sheltered fashion. I believe you can even pay taxes on gains made within the trust from money outside the trust.

I’m no expert but something to look into as you can put money away while still having access to it if you need down the line (with some restrictions but you don’t run the risk of giving away too much and going broke)[/quote]

We have a SLAT. So long as the grantor is alive (my husband), it is a grantor trust, so everything is taxed to him personally. Once he dies, the trust stands on its own. I am the trustee and a beneficiary and can access the money. This all works so long as we stay married. [/quote]

What happens in a divorce? It gets split 50/50? [/quote]

By the sound of it, nope. The assets are in a trust protected from ex-wives and creditors while giving grantor access to the money. Once divorced, the ex-spouse no longer has legal access to the trust. Win-win for the fella![/quote]
No

If the IR was set up during a marriage for events happening during the marriage (not solo inheritance), then regardless of if the spouse is a beneficiary or trustee or nothing, the courts will divy it up.  Whether living in an equitable state or a community law state.

If hidden from spouse then big issues arise.

Unclear if it matters where you live versus where it was set up and out in place. (State law) [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics