Including trust protector provisions under one's trust document grants wide flexibility over trust administration; understanding contemporary issues concerning estate planning highlights the benefit that trust protectors may provide and guide planning efforts. Read more.
Alaska first enacted statutes for DAPTs in 1997. Other states have passed similar legislation since then. One fact has remained constant: No creditor has collected a judgment or settlement against a debtor.
Since trust protector provisions are not included in the trust document by default, many individuals find themselves in a situation where they wish to add provisions to an existing trust. If you are considering adding such provisions, outlined below are a few questions that should be discussed during a consultation with a trust attorney.
Legislation and drafting issues have prompted changes in trust drafting methods. Over the past few decades, shifts in trust drafting techniques have helped to prevent trust administration issues and preserve the best interests of beneficiaries.
A trust protector has significant power over trust administration. When critical matters hinge on one party, it's important to consider how a trust protector will be replaced if and when the time comes.
The IRS released a Private Letter Ruling last month that ruled in favor of retroactive trust modification. Here are a few factors to consider with this case involving tax benefits associated with modification of irrevocable trusts.
Still relatively new to domestic trusts, trust protectors can be traced back to early implementation in offshore trusts. Here is a brief timeline of trust protectors.
While trusts may minimize liabilities that could compromise trust assets for beneficiaries, the party responsible for administering the trust carries their own risks. Trustees bear tremendous personal liability.
Trusts may be known for their tax advantages, but these tools have benefits beyond tax savings. As discussions about federal estate tax adjustments continue, use of a trust to minimize the impact of the estate tax may not be as valuable as it was in the past. However, effective wealth planning and asset management comprises more than merely tax issues.