- This chapter will give you a tertiary overview of the components, value and common uses of trusts in the profit and non-profit sectors. You will find, as an Executive Trust Officer, your range of knowledge will allow you to operate over a broad spectrum of individuals, businesses, churches and foundations.
- This chapter will give you an overview of the components that make trusts effective and sought out by a number of entities, for their tax advantageous value, as well as wealth transfer capabilities.
- This chapter is not to inundate you with the intricacies of trust law, nor should it be your focus, to do so. It is not prudent to attempt to usurp or practice the dominion of attorneys; however, it is a sound desire to be suitably conversant in the language that applies to trusts.
- This chapter will delineate what assets NOT to place in a trust, as their very underlying nature may create situations that undermine the effectiveness, scope and intent of the trust.
- Probate has become a term that is dreaded by many people, simply because they believe it to be some Draconian process that bears tremendous expense and time.
A major component of trusts is that they completely avoid probate.
Using gifts to charity can accomplish a number of things for the donor:
- It can supply a legacy to a cherished organization.
- It can result in significant avoidance of taxes, as well as substantial tax-deductions.
- It can supply a lifetime income for the donor and their spouse.
- It can supply income for generations of a family.
- In what can only be described as an exponentially growing field, partners of non-traditional relationships and pet owners are requiring mechanisms to ensure their loved ones are cared for.
- Medicaid has bankrupted more people in the latter stages of their lives than any lawsuit or investment loss. A properly structured trust can avoid this devastating event.
- There are children that are special needs children who have suffered some birth defect, debilitating illness or catastrophic event that clearly dictates that they will require intense care and supervision their entire life. The trust that ensures their care, needs to contain specific language components to be impervious to challenge.
- As people amass assets through the years, they enter a phase when they rationally begin to explore estate planning techniques, to preserve both asset and inheritance values.
No single instrument will offer the credit protection of a trust. - Trusts have a number of varied uses and desired outcomes.
This chapter will cover the most routine applications of trusts that are applicable to the everyday financial situations, of the average person.
- Over the last three tax acts, Congress has labored, arduously to stem the transfer of untaxed wealth among family members.
However, creative use of the U.S. Tax Code aligned with the proper trust will allow for the transfer of significant, untaxed dollars. - Charitable Trusts are the single largest, yet most widely unknown strategy to effect the avoidance of taxes, provide lifetime income and transfer untaxed wealth to heirs.
- Life Insurance Trusts are the most tax-efficient method to transfer and create untaxed wealth.
There are approximately 10 different strategies where a variation of these trusts will supply tremendous benefits for a client and their family. - Due to the specific nature of charitable giving, the tax rules and requirements are not universally known.
But as an Executive Trust Officer, you will find that it is compulsory that these arcane measures will, undoubtedly, work their way into your everyday practice. - No area of taxes has been more revised, revamped, edited, deleted and made more confusing, over the last 10 years than the estate tax segment of the U.S. Tax Code. It sometimes, seemingly, appears that if revision is the hobby of the Tax Committee, as their constant changes fill two complete volumes of the U.S. Tax Code anthology.
- In the last few years, as the economy first contracted, then convulsed and finally collapsed, we saw the economic engine screech to a resonating halt.
The business blast radius caused a recession unvisited upon our nation since the days of The Great Depression.
The perfect storm, so to speak, was created for people to understand the vast tax advantages and benefits of charitable trusts. - In the wildly gyrating vortex of the present economy, turbulence can evolve to opportunity for those astute enough to capture and broadcast the effectiveness of deferred gifts, housed in a trust. This structure will supply significant current tax deductions, a lifetime, guaranteed income and transfer increased tax-free inheritance to heirs.
- People of substantial means are constantly seeking methods to avoid taxes on their assets.
Unfortunately, some end up making tax-court history for the schemes they become involved in.
There are more than ample, legitimate strategies contained in the U.S. Tax Code and when you master these, you are very much in demand, on all economic levels. - Not every charitable trust will involve an annuity, life insuarnce or a stock portfolio, as the varied assets classes of today, dictate that you will have to utilize your creativity.
Trusts are only limited by your clients desires and your knowledge and creativity. - It is not uncommon for a trust to involve collectables, art, coin collections, precious metals or even livestock (from a farm being sold and seeking to avoid capital gains). Unlike, a stock or a bond with a known, indexed value, art, coins etc., are subject to the discriminating eye or knowledge of the individual appraiser. In this area, your expertise may speak volumes for the person seeking to create a trust.
- The single, largest asset of most people is their IRA. It, is also the most misunderstood and heavily taxed.
IRA's bear a tax titled Income in Respect of Decedent which means, if the peroson who owned the IRA dies, without it being taxed, the person who inherits it will pay the tax.
An IRA Trust can negate all the pitfalls. This exam will measure the breadth and scope of what you have achieved in your knowledge base and will allow you to embark swiftly and confidently into your professional practice.
You will clearly demonstrate that you have captured and will broadcast the intelligent voice of the learned intricacies of trust planning.
Aside from rudimentary application of trusts, you will have mastered the nuances and subleties that allow you to be creative, on your own canvas, so to speak.
Unihibited and bridling with optimism, you can cast a dominant footprint in the highest echelon of finance.
Now, it is time to evaluate, your efforts...
- In being able to demonstrate a conversant knowledge of the intricacies of the relevant tax law, as it applies to trusts, will give you an unparalleled level of scholarship that translates to an extraordinary income.
- You have completed all the required course work and testing that allows you to have a broad scope of the intricacies and applications of trusts. The accompanying case studies and video files, have enhanced your understanding of this body of knowledge. Now, it is time to leisurely read the simply explained, yet, extraordinarily solutions that will be applicable to 90% of all the situations that you encounter, as an Executive Trust Officer.