I know @bsteiner regularly recommends inheriting in trust rather than directly for several reasons. The only reason that interests me is keeping it out of my kids' estates because they might have estate tax issues. Hard to say because they're only in their 20s now, but I might as well plan.
What are the requirements on a trust for it to be kept out of their estates? Things I think I want:
1. Them to be their own trust's trustee.
2. HEMS standard.
3. Power of appointment.
4. Option to dissolve their trust if they want.
5. Ability to distribute income (to avoid trust tax rates).
Are any of those in conflict with keeping it out of their estate? Are there any other basic requirements that need to be met?
Also, I kind of totaled up how much I have that would end up in their trusts, and I think that number is large enough to make it worth doing. But if anyone has rules of thumb for how much is enough to bother with trust language, I'd be interested. I have other assets (mostly IRAs) that will pass by beneficiary.
What are the requirements on a trust for it to be kept out of their estates? Things I think I want:
1. Them to be their own trust's trustee.
2. HEMS standard.
3. Power of appointment.
4. Option to dissolve their trust if they want.
5. Ability to distribute income (to avoid trust tax rates).
Are any of those in conflict with keeping it out of their estate? Are there any other basic requirements that need to be met?
Also, I kind of totaled up how much I have that would end up in their trusts, and I think that number is large enough to make it worth doing. But if anyone has rules of thumb for how much is enough to bother with trust language, I'd be interested. I have other assets (mostly IRAs) that will pass by beneficiary.
Statistics: Posted by secondcor521 — Thu Jun 27, 2024 10:17 pm — Replies 1 — Views 168