Currently the Revocable Living Trust is the most popular type
of trust for estate planning. With the current estate tax exemption at 5
Million dollars, many have begun to ask if there is a need for such a
trust. More over the Revocable Living Trust provides no asset
Currently 99.7% of the US population has less than 5 Million in
Assets. While a Revocable Living Trust can offer privacy, probate
avoidance, easier management of one's assets, and numberous other
benefits, it does not offer any asset protection. Many people really
want an irrevocable trust, but do not want the consequences of the
traditional irrevocable trust. While there are many types of irrevocable
trusts, most either cause a loss of control over the assets by the
grantor, loose the stepped up basis, or cause the trust to pay taxes at
the highest tax rate with as little as $11,000 in earnings.
There are variations of the irrevocable trust that can solve one or
more of these issues, but there is only one type of Irrevocable Trust
that has the flexibility of a revocable trust, provides asset protection
from the creditors of the creators as well as the beneficiaries, allows
the income to be taxed at personal rates, and provides for stepped up
basis upon the death of the creator.
While the IPUG: Irrevocable Pure Grantor Trust defies the logic of
most estate planners, it has been designed using common law, trust law,
and tax law to provide Asset Protection, taxing at a personal level, the
ability to control the income and principal, stepped up basis and even
can even help in nursing home qualification or Medicaid eligibility.
If you would like to find out how you can upgrade your standard
revocable trust or create a new Florida Asset Protection Trust, contact a
Florida Estate Planning Lawyer that is knowledgeable about the Irrevocable Pure Grantor Trust and how to structure it to accomplish your goals.
View more from the Florida Estate Planning Lawyer Blog.
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