Help shift income and tax liability away from the Trustee to potentially reduce overall tax obligations.
Minimize income tax obligations and maximize tax-efficient wealth transfer.
IRREVOCABLE PROVISION
Cannot be modified or revoked without Trustee consent.
Provide greater asset protection.
Offers many tax advantages.
Tax advantages, such as reducing estate taxes and protecting assets from potential creditors.
COMPLEX PROVISION
The trust must retain some of its income and not distribute all of it to beneficiaries.
Offer greater control over income distribution and accumulation.
Potential for tax advantages and charitable giving opportunities.
DISCRETIONARY PROVISION
The discretionary provision grants the trustee discretion in distributing trust assets among the beneficiaries.
The trustee has the authority to determine the timing and amount of distributions, based on the beneficiaries’ needs and the objectives set out in the trust document.
Beneficiaries do not have an automatic entitlement to distributions, as the trustee has discretion over who receives how much and when.
SPENDTHRIFT PROVISION
The Spendthrift Trust provision is designed to protect trust assets and provide controlled distributions to beneficiaries.
The Spendthrift Trust’s main objective is to safeguard beneficiaries from creditors, promote responsible spending, and preserve family wealth for future generations.
May NOT be penetrated to reach the assets of the corpus nor can a judge or court issue a turnover order against a properly constructed Spendthrift Trust.
