• A Dynasty Trust is an irrevocable trust designed to hold and transfer wealth across multiple generations.• Properly structured dynasty trusts can minimize or eliminate estate and generation-skipping transfer (GST) taxes over time.• The trust allows assets to compound for beneficiaries without repeated transfer taxation at each generation.• Dynasty Trusts are commonly used by high-net-worth…
• A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust designed to transfer asset appreciation to beneficiaries with minimal gift tax exposure.• The grantor retains the right to receive fixed annuity payments for a specified term.• GRATs are most effective when funded with assets expected to appreciate faster than the IRS assumed rate of…
• A Revocable Living Trust is an estate planning vehicle used to hold assets during an individual’s lifetime and transfer them at death.• The grantor retains full control over trust assets and may amend or revoke the trust at any time.• Assets held in a revocable trust generally avoid probate but do not receive asset…
• A Delaware Statutory Trust (DST) is a legal entity used to hold title to real estate for multiple investors.• DST interests are treated as direct ownership of real estate for §1031 exchange purposes under IRS guidance.• DSTs allow investors to acquire fractional interests in institutional-quality properties while remaining passive.• DSTs are frequently used as…
• A Charitable Remainder Trust (CRT) is an irrevocable trust that provides income to non-charitable beneficiaries for a term, with the remainder passing to charity.• CRTs can be structured to defer capital gains taxes on the sale of appreciated assets.• The grantor may receive a charitable income tax deduction based on the present value of…
• An Irrevocable Trust is a trust structure that generally cannot be amended or revoked once established.• The grantor relinquishes control over transferred assets in exchange for potential tax, asset protection, and estate planning benefits.• Assets transferred to an irrevocable trust are typically removed from the grantor’s taxable estate.• Irrevocable Trusts serve as the foundation…
• An Intentionally Defective Grantor Trust (IDGT) is an irrevocable trust structured so the grantor is treated as the owner for income tax purposes but not for estate tax purposes.• The structure allows assets to be removed from the grantor’s taxable estate while the grantor continues to pay income taxes on trust earnings.• IDGTs are…