Sample policy for mandating direct deposit
What techniques do you have the comfort to agree to?Have you reviewed with your professional advisers all the myriad of issues that might arise using these techniques?Other states permit self-settled-like trusts (you can set up a marital trust for your spouse and on his or her demise the assets come flow into a credit shelter trust that you are a beneficiary of).All told there is a significant number of states that permit self-settled trusts.For example, one technique is to give someone a general power of appointment over a trust.That means they will be given the right to designate who will receive the assets of the trust. While layers of limitations can be placed on such powers they do bring increased layers of complexity.The Practical Planner is a bi-monthly electronic (or if you prefer, paper) sophisticated planning newsletter that provides practical and creative ideas to address estate, tax, business, personal, financial, and asset protection planning.
How will the cost and complexity of trust administration change if you as a trustee cannot assume that the governing instrument can be relied upon as the governing instrument? Taxes, while unquestionably an exciting cocktail party topic, are just not as important for many folks as more complex fuzzy personal topics.
If you borrow million using the highly appreciated stock as collateral, you can gift the M to a grantor trust.
You will grow the value of those assets outside your estate, you’ll pay the income tax on trust income reducing your estate, and your estate will be reduced by interest charges. What if the securities the trust invests in with the fund borrowed plummet in value?
Example: You have a highly appreciated stock portfolio worth M.
You might choose to retain those stocks in your estate so that on death the significant appreciate is eliminated by a basis step up.