Morrison & Foerster LLP: Issuing a Trust’s Promissory Note to Defer Payment of a Unitrust Amount Should Not Cause the Trust to Recognize Gain or Loss

By Danielle T. Zaragoza, Esq ., Morrison & Foerster LLP The basic concept of a unitrust is that a fixed percentage of the fair market value of a trust's assets, redetermined each year, is paid out to the "income" beneficiary, regardless of the availability of income to fund the payment...

Morrison & Foerster LLP: Decanting a California Trust

By Joshua Glucoft,* Morrison & Foerster LLP In the administration of an irrevocable trust, situations can arise that were beyond the anticipation of the trustor. Therefore a trustee may want to "decant" a trust by transferring funds from one trust to another with preferable terms...

Morrison & Foerster LLP: Dynasty Trusts: The Perpetuities Patchwork and Other Considerations

By Genevieve M. Moore , Morrison & Foerster LLP As the year winds down, many of our clients are taking advantage of the unprecedented opportunity to make gifts of up to $5,120,000, per donor, free of any federal gift tax. Since the federal generation-skipping transfer tax (GST) exemption is...