What is a Successor Trustee? A Successor Trustee administers the trust after the Grantor passes utilizing their powers for the benefit of the beneficiaries of the trust. When the creator of a trust dies or becomes incapacitated, a Successor Trustee steps into the role. The successor then administers the trust […]
Estate Planning
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What Is a Deferred Annuity? A deferred annuity is an insurance contract where savers contribute money and defer their income stream until later, usually upon retirement. The contract with an insurance firm is usually structured to pay the owner a regular income or a lump payment at some point in […]
What Is An Asset Protection Trust (APT)? An Asset Protection Trust (APT) is a self-settled Trust intended to shield an estate and assets from creditors, lawsuits, or legal judgments. An asset protection trust (APT) is a type of trust that holds an individual’s assets in order to protect them against […]
What Is an Intentionally Defective Grantor Trust (IDGT)? An intentionally defective grantor (IDGT) trust is an estate-planning strategy used to freeze an individual’s assets for estate tax purposes but not for income tax purposes. The intentionally defective grantor trust is set up as a standard grantor trust, but with a […]
NUA – What Is Net Unrealized Appreciation? NUA or net unrealized appreciation is the rise in the value of an employee retirement plan when a lump-sum distribution is made into a taxable account. Instead of being taxed as regular income, the difference in value is taxed at long-term capital gains […]
What Is a Grantor Retained Annuity Trust (GRAT)? A grantor retained annuity trust (GRAT) is a financial tool used in estate planning to reduce taxes on substantial financial transfers made to family members. In these arrangements, an irrevocable trust is established for a specific length or period of time. When […]