Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

No. I get dropped as beneficiary (it is treated as though I died) and kids become primary beneficiaries. Husband never can get access to it. That is what makes it irrevocable.

It will become two individual IR Trusts - one from you, one from the kids- and go to the kids. Neither parent can touch it or change it.

No. That is not correct. I am no longer beneficiary and our kids become primary beneficiaries.

In the 9 community law states it will get split.
In the requirable law states you can go to court to split it.

Otherwise the spirit of it is to mainly go to the kids upon last survivor death so let it be. It’s not money either parent can use nor get to.

Correct. We are not in a community property state. Our estate lawyer was very clear as to how it would work. And made it very clear to husband that the whole thing kind of falls apart for him if we get divorced.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

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!

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)

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

No. I get dropped as beneficiary (it is treated as though I died) and kids become primary beneficiaries. Husband never can get access to it. That is what makes it irrevocable.

It will become two individual IR Trusts - one from you, one from the kids- and go to the kids. Neither parent can touch it or change it.

No. That is not correct. I am no longer beneficiary and our kids become primary beneficiaries.

In the 9 community law states it will get split.
In the requirable law states you can go to court to split it.

Otherwise the spirit of it is to mainly go to the kids upon last survivor death so let it be. It’s not money either parent can use nor get to.

Correct. We are not in a community property state. Our estate lawyer was very clear as to how it would work. And made it very clear to husband that the whole thing kind of falls apart for him if we get divorced.

What if you move to one and divorce?

Does it matter what state the IR was set up when you divorce or what state you are divorcing in?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

No. I get dropped as beneficiary (it is treated as though I died) and kids become primary beneficiaries. Husband never can get access to it. That is what makes it irrevocable.

It will become two individual IR Trusts - one from you, one from the kids- and go to the kids. Neither parent can touch it or change it.

No. That is not correct. I am no longer beneficiary and our kids become primary beneficiaries.

In the 9 community law states it will get split.
In the requirable law states you can go to court to split it.

Otherwise the spirit of it is to mainly go to the kids upon last survivor death so let it be. It’s not money either parent can use nor get to.

Correct. We are not in a community property state. Our estate lawyer was very clear as to how it would work. And made it very clear to husband that the whole thing kind of falls apart for him if we get divorced.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

No. I get dropped as beneficiary (it is treated as though I died) and kids become primary beneficiaries. Husband never can get access to it. That is what makes it irrevocable.

It will become two individual IR Trusts - one from you, one from the kids- and go to the kids. Neither parent can touch it or change it.

No. That is not correct. I am no longer beneficiary and our kids become primary beneficiaries.

In the 9 community law states it will get split.
In the requirable law states you can go to court to split it.

Otherwise the spirit of it is to mainly go to the kids upon last survivor death so let it be. It’s not money either parent can use nor get to.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

No. I get dropped as beneficiary (it is treated as though I died) and kids become primary beneficiaries. Husband never can get access to it. That is what makes it irrevocable.

It will become two individual IR Trusts - one from you, one from the kids- and go to the kids. Neither parent can touch it or change it.

No. That is not correct. I am no longer beneficiary and our kids become primary beneficiaries.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

No. I get dropped as beneficiary (it is treated as though I died) and kids become primary beneficiaries. Husband never can get access to it. That is what makes it irrevocable.

It will become two individual IR Trusts - one from you, one from the kids- and go to the kids. Neither parent can touch it or change it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

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!

Not exactly. I cannot access the money. Spouse never can. That is what you give up for making it irrevocable and getting it out of our estate. I can stay on as trustee and ours become the beneficiaries. So I still have control but no rights to the money.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

No. I get dropped as beneficiary (it is treated as though I died) and kids become primary beneficiaries. Husband never can get access to it. That is what makes it irrevocable.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

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!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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)

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.

What happens in a divorce? It gets split 50/50?

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!