ESTATE and TAX PLANNER
Control vs. Ownership
The Irrevocable Contract Trust for Protecting
Personal Assets and Operating a Business
Features
• Insulates personal liabilities from Trust assets
• Protects assets from probate court, fees, estate or inheritance taxes due to death of Grantor
• As a business form, filing 1041 has major tax advantages over 1040, 1065, or 1120
• Flexible and easy to operate
• Legally sound and proven
• Makes obsolete A-B, QTIP, and other single purpose Trusts designed for death not life
• The choice for enabling assets to be managed by selected beneficiaries, generation after generation without interference
Today there is a growing awareness of the trust and its importance as the centerpiece of estate planning. However, emphasis seems to focus mostly on avoiding probate … that insidious process which decimates your estate when you die. There is, however, so much more to consider.
What if you live? Have you given thought to what can happen to all you’ve striven for, only to have it taken away in an instant?
Your teenager gets in a serious accident with the family car; you back out of your driveway only to smack into a school bus full of attorneys’ kids; your business sours and bankruptcy is just around the corner; you or your spouse are struck with an illness requiring long term confinement and nursing care not covered by your insurance. The list goes on.
When you consider the myriad of things in life that can innocently and routinely devour your estate, vagaries of economic reality means there is so much more to preserving assets than only the avoidance of probate.
The purpose of this brochure is to present the exemplary benefits of the Irrevocable Contract Trust as an alternative to the exposure of personal and business assets to the ravages of frivolous lawsuits, liens, and judgments, as well as the avoidance of probate, and the legal means in which all assets can be managed by designated heirs without interference or interruption, generation after generation.
What is a trust?
A trust is defined as a “right of property, real or personal, held by one party for the benefit of another”. Real Property refers to land, buildings, homes, crops, or mineral rights. Personal Property consist of movable objects such as furniture, vehicles, stocks, bonds . . . or anything that is of value to you.
What is an Irrevocable Contract Trust?
There are literally hundreds of Trusts. Some avoid probate only while others have tax advantages in certain applications. However, it is the Irrevocable Contract Trust that remains eminent in personal and business financial and estate planning. The Irrevocable Contract Trust acts in many ways like an individual, buying, selling, owning, spending, earning. As a private contract, this Trust is not subject to estate or inheritance taxes since it does not die, nor does a Contract Trust pay income taxes, and it can defer capital gain taxes in real estate transactions, and as a business entity, has extraordinary tax saving advantages over other business forms. The Living part of the Trust means the contract is established during your lifetime.
A Trust is a legal entity (a paper person) . . . and as such its liability is limited similar to a corporation. In fact corporations were fashioned after Trusts which is why there are so many similarities.
1). The Trust is set up in fee simple which means the Trustees have the power (the legal right) to do anything legally they wish with the assets of the Trust! They can buy, sell, invest, build, enter into contracts, give gifts . . . or make any decisions they determine are in the best interest of the Trust
2), The Irrevocable Contract Trust is not qualified Grantor-type Trust under the Internal Revenue Code Sections 671-678
3), Trusts have been around since 800 AD! Trusts originally came to America from Europe and England, and were utilized by people to protect their property during the development of the colonies. One of the first Trusts in the United States was the Virginia Land Company in 1709. In 1765, Patrick Henry set up the ‘Robert Morris Family Trust’ to protect their property from English taxes and laws. This Family Trust is still operating today as the “North American Land and Cattle Company” of Chicago, Illinois!
There are a myriad of reasons why virtually everyone should place their asset into Trust. Only you can decide what is best for you and your loved ones. The facts are clear, however, that there are some frightening events waiting to happen to assets belonging to you and if you die without a “plan”, your State has one for you!
Here are just a few of the advantages of an Irrevocable Contract Trust holding assets that once belonged to you personally:
• You are qualified for Medicaid
• Creates living legacy for continued operation of estate
• Eliminates disputes within family over money matters
• Shields assets from personal lawsuits, liens and judgments
• Ultimate pre-nuptial and post-nuptial agreement that works
• Completely eliminates estate and inheritance taxes
• No fees or delays when a death occurs
• Private and confidential
• Beneficiaries cannot challenge an Irrevocable Contract Trust as with other types of Trusts.
An Irrevocable Contract Trust pays NO Income Tax. So stated in the Corpus.
When your property is safely ensconced within an Irrevocable Contract Trust, that Trust owns the property. And should you die, the trust is still owner of the property and there is no probate, or estate or inheritance taxes since the transfer of property titles occurred prior to death. Therefore assets transferred to an Irrevocable Contract Trust prior to death means:
• No probate court or its costs
• No Attorney fees
• No executor fees
• No estate taxes
• No inheritance taxes
• No administrative fees
• No appraisal fees
• No waiting periods
• No forced sale of assets at fire-sale prices
• No public disclosure
Notice, there is no public disclosure. The irrevocable Contract Trust is both personal and private! It has often been said that it is not the dead that suffer, rather the living! The living suffer because they have lost a loved one, and have suffered the loss of what the loved one had striven for all of his or her life because of the unnecessary confiscation of property by predatory litigation.
TRUST TABLE
Irrevocable Trust
Must there be Probate? NO
Will assets in Trust avoid all Federal Estate and inheritance taxes when I die? YES
Will my assets in trust be included in my estate when I die? NO
Can I create a true estate legacy for generation after generation? YES
Asset shielded from my personal liabilities? YES
Business actions can be shielded from me personally? YES
Pre-nuptial or post-nuptial advantages? YES
Can be broken or altered by beneficiaries? NO
Can be operated as a business entity? YES
With all my assets in trust, I can qualify for Medicaid? YES
Cost of Death, beginning with Estate Taxes NONE
For more information and to have your Irrevocable Contract Trust written for you, then contact:
Tom-P:Suvak
Tpservicesllc
All Rights Reserved
cwren38@comcast.net
Give us your name, phone number, and a reasonable time to contact you.
