Definitions

Traditional Estate Planning Compared To Legacy Planning

1 Pillar of Support Compared to 4 — Focus on Life and Living Purpose, alignment, trust and communication- building and preparedness are about life and living. Focus on people first. In a study of 2,600 adult children and parents, when asked to choose only one of the four Legacy Planning Pillars, not one person surveyed…

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Discretionary Trust Explained

Discretionary Trust Explained

A discretionary trust is a trust where assets are held in the trust by the trustee, and income or principal are distributed, in the trustee’s discretion, to the beneficiaries for health, education, maintenance and support, among others. Oftentimes you’ll see language, typically IRS code type language, “reasonable comfort,” typically relating to providing for language that…

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Offshore Trust Explained

Offshore Trust Explained

An "offshore" trust is a trust that is set up under the trust rules or is governed by the rules in an offshore jurisdiction, which does not actually need to be overseas or in another country – though it can be. The assets of the offshore trust could be invested in the NY Stock Exchange…

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What Are Estate Tax Exemptions?

What is the Federal Gift Tax?

Two separate estate tax exemptions exist that could apply when leaving assets to family, a lifetime tax exemption and a generation-skipping exemption. Lifetime Tax Exemptions The exemption most typically applied is called the Lifetime Tax Exemption, where each individual has a certain amount of federal tax exemption that they can leave to their heirs, usually a…

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What Are Estate Tax Exemptions?

What is the Federal Gift Tax?

Two separate estate tax exemptions exist that could apply when leaving assets to family, a lifetime tax exemption and a generation-skipping exemption. Lifetime Tax Exemptions The exemption most typically applied is called the Lifetime Tax Exemption, where each individual has a certain amount of federal tax exemption that they can leave to their heirs, usually a…

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What Is A Special Needs Trust?

Special Needs Trust Explained

A special needs trust provides for the care of a beneficiary that is unable to care for themselves. It is often set up to provide for disabled people. It can also be set up to anticipate the needs of an elderly parent. In some cases, a special needs trust could be utilized to include treatment…

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Definition of Living Trust (Revocable Trust)

Living Trust Definition

A living trust is the same as a revocable trust, a revocable living trust, and an inter vivos trust. Think of a trust as a third-party beneficiary contract where you have a trustmaker, grantor, settlor, or settlors who form a trust, basically as an agreement with a trustee party to provide for beneficiaries. Often when…

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Definition of Living Trust (Revocable Trust)

Living Trust Definition

A living trust is the same as a revocable trust, a revocable living trust, and an inter vivos trust. Think of a trust as a third-party beneficiary contract where you have a trustmaker, grantor, settlor, or settlors who form a trust, basically as an agreement with a trustee party to provide for beneficiaries. Often when…

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Definition of Irrevocable Trust

An irrevocable trust cannot be changed. It is a trust that, by its terms, can’t be changed except by terms that might be written into the irrevocable trust. It must operate according to whatever are its terms. An irrevocable trust is typically set in a particular jurisdiction: It is considered an independent person under the tax…

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