What is an irrevocable trust?
>> Friday, March 5, 2010
An irrevocable trust is a trust that cannot be changed or amended after it is signed. When properly established one of the primary benefits of this type of trust is that the Settlor/Grantor, [the person(s) who sets up the trust], is no longer considered to be the owner of the trust property, thereby removing the trust property from the person's estate. This effect can potentially reduce the size of the grantor's gross estate thereby protecting the trust assets from being subjected to estate taxes by the IRS.
There a number of different types of irrevocable trusts. All of these trusts share two characteristics:
- Once they have been established, they cannot be altered or canceled.
- The grantor cannot also be both the trustee (the one responsible for making investment decisions) and the beneficiary (the one who receives the benefits from those investments).
The three most commonly utilized irrevocable trusts are:
- Irrevocable Income Only Trusts (IIOTs)
- Irrevocable Life Insurance Trusts (ILITs)
- Generation-skipping Trust (GSTs)
Irrevocable trusts are sometimes used to make gifts to others - the trust beneficiaries - "with strings attached." When making gifts to children or grandchildren, parents and grandparents have a choice, they may either give assets directly to the beneficiary or they can place the assets into trust, accompanied by a set of written instructions that direct how the trust's assets may be distributed and/or utilized. These instructions are often where the strings are attached to the gift(s). By placing the gift(s) in trust enables the grantor to control the use for which the gift is intended.
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Thought of the Day
Pendaareh Neek
Goftaareh Neek
Raftaareh Neek
Goftaareh Neek
Raftaareh Neek
-Ancient Zoroastrian Tenants (written in Farsi)
English translation:
Pure [Good] Thoughts
Pure [Good] Words
Pure [Good] Actions
Thought of the Day
>> Wednesday, February 3, 2010
For our own success to be real, it must contribute to the success of others.
- Eleanor Roosevelt
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>> Tuesday, February 2, 2010
You will never win if you never begin.
- Robert Schuller
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- Robert Schuller
Thought of the Day
>> Sunday, January 31, 2010
There are certain things that are fundamental to human fulfillment. The essence of these needs is captured in the phrase ‘to live, to love, to learn, to leave a legacy’.
- Stephen R. Covey
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Thought of the Day
>> Saturday, January 30, 2010
If your actions create a legacy that inspires others to dream more,
learn more, do more and become more, then, you
are an excellent leader.
- Dolly Parton
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>> Friday, January 29, 2010
Every action of our lives touches on some chord that will vibrate in eternity.
- Sean O’Casey
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Thought of the Day
>> Thursday, January 28, 2010
Integrate what you believe in every single area of your life. Take your heart to work and ask the most and best of everybody else, too.
- Meryl Streep
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>> Tuesday, January 26, 2010
Snowflakes are one of nature’s most fragile things, but just look what they can do when they stick together.
- Vista M Kelly
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Thought of the Day
>> Monday, January 25, 2010
To laugh is to risk appearing a fool.
To weep is to risk appearing sentimental.
To risk for another is to risk involvement.
To expose feelings is to risk rejection.
To place your dreams before the crowd is to risk ridicule.
To love is to risk not being loved in return.
To go forward in the face of overwhelming odds is to risk failure.
But risks must be taken because the greatest risk is to risk nothing.
People who risk nothing, do nothing, have nothing, are nothing.
They may avoid suffering and sorrow, but they cannot learn, feel, grow, or love.
Chained by their uncertainties, they are slaves.
They have forfeited their freedom.
Only people who take risks are free.
- Author unknown
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Thought of the Day
>> Friday, January 22, 2010
All great achievements require time. — Maya Angelou: is an American Poet
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>> Thursday, January 21, 2010
The Life which is unexamined is not worth living. - Socrates
Read more...Thought of the Day - The Family Mission Statement
>> Wednesday, January 20, 2010
A family mission statement is... meant to be the literal constitution of your family life. And just as the United States Constitution has survived for more than two hundred sometimes turbulent years, your family constitution can be the foundational document that will unify and hold your family together for decades - even generations - to come....
By creating and living by a mission statement, families are gradually able to build moral authority in the family itself. In other words, principles get built right into the very structure and culture of the family, and everyone comes to realize that principles are at the center of the family and are the key to keeping the family strong, together, and committed to its destination. Then the mission statement becomes like the Constitution of the United States - the ultimate arbiter of every law and statute. The principles upon which it is based and the value systems that flow out of those principles create a social will that is filled with moral or ethical authority.
- Stephen R. Covey,
The 7 Habits of Highly Effective Families 93, 142 (1997).
The 7 Habits of Highly Effective Families 93, 142 (1997).
Thought of the Day
>> Thursday, January 14, 2010
If you are planning for the year, grow rice.
If you are planning for the decade, grow trees.
If you are planning for the centuries, grow men and women.
- Chinese Proverb
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