advertisement
May 1, 2011 12:00 PM
A Balanced Solution
Meet your clients' needs for a comfortable retirement cushion through a sale to a beneficiary grantor trust; and reduce assets enough to avoid taxes
When we recommend ways for our clients to reduce their estates, we're mindful that clients generally want a comfortable cushion for retirement. But, providing this comfortable cushion is often inconsistent with reducing their estates enough to avoid estate tax. Consider solving this problem by using a beneficiary grantor trust (BT).
A BT is an irrevocable trust that a third party creates for your client. Your client is the beneficiary, can be a trustee and has the broadest possible non-general power of appointment. The settlor allocates generation-skipping transfer (GST) exemption to the trust to keep it outside of the estate tax system forever. The beneficiary is the deemed owner for income tax purposes but not for transfer tax purposes. The beneficiary later sells to the trust, for a note, non-voting S corporation stock or an interest in a limited liability company (LLC) taxed as a partnership.
Sign in to
view the full article
Not a subscriber?
Subscribe & Save
Get immediate access to Trust & Estates onlineSubscriber Benefits
Learn more about Trust & Estates magazine, online article access and our free enewsletters.
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
Poll
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
advertisement
T&E eNewsletters
Wealth Watch 
Wealth Watch is a free e-newsletter delivered twice a month with expert advice on wealth management from Trusts & Estates.
Latest from Wealth Watch
Tech. Review
Technology Review is a free monthly e-newsletter from Trusts & Estates and nationally renowned expert Donald H. Kelley. It is geared to keeping estate planning lawyers current on the latest tech news they can use.
Latest from Tech. Review
Philanthropy Tax Guide
Each month, Conrad Teitell reports on and analyzes as important tax development governing charitable contributions, including how to maximize the benefits and avoid the pitfalls.
Latest from Conrad Teitell
2011 Trust Glossary
Click here to download the 2011 Trust Glossary
50 Years Ago This Month
| 50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb. |
Conrad Teitell's Guide to Tax Benefits For Charitable Gifts
Click here to view the most up to date guide (September 2011)
Press Releases
advertisement
advertisement
