Overview of Estate Tax Rates Estate tax rates refer to the percentage of tax that is imposed on the value of an individual’s estate upon their death. These rates can vary depending on the total value of the estate and the applicable tax laws in the jurisdiction. Additionally, many jurisdictions … …
Dynasty Trust: Definition, Purposes, How It Works, and Tax Rules A dynasty trust is a powerful estate planning tool that allows individuals to pass on their wealth to future generations while minimizing estate taxes. This type of trust is designed to last for multiple generations, providing ongoing financial support and … …
Distributable Net Income: Definition and Formula Distributable Net Income (DNI) is a term commonly used in trust and estate planning to determine the amount of income that can be distributed to beneficiaries. It is an important concept to understand when managing trusts and estates, as it helps ensure that the … …
What is a Declaration of Trust? The Declaration of Trust outlines the specific instructions and guidelines for how the trust should be managed, including how the assets should be invested, distributed, and protected. It also identifies the beneficiaries who will receive the trust’s assets and any conditions or restrictions that … …
What is a Contingent Beneficiary? A contingent beneficiary is a person or entity named in a legal document, such as a will or trust, to receive assets or benefits if the primary beneficiary is unable to do so. The contingent beneficiary is typically named as a backup option in case … …
Bare Trust: Definition In a bare trust, the trustee has a legal obligation to manage and protect the assets for the benefit of the beneficiary. However, they cannot make any decisions regarding the assets without the explicit consent of the beneficiary. The trustee’s role is limited to holding and transferring … …
Why Estate Planning is Essential for Everyone Estate planning is a crucial process that everyone should undertake to ensure their assets and wishes are protected and carried out after their death. It involves making important decisions about how your assets will be distributed, who will manage your affairs, and who … …
Account in Trust: Definition, Types, Benefits, How To Set One Up An account in trust refers to a financial account that is held and managed by a trustee on behalf of a beneficiary. This type of account is commonly used in trust and estate planning to protect and manage assets … …
A-B Trust: Definition and How It Works Definition How It Works When the first spouse passes away, the assets in the A trust are not subject to estate taxes because they qualify for the marital deduction. The surviving spouse can use these assets as needed. The assets in the B … …
What is Trust & Estate Planning? Trust & Estate Planning is a legal process that involves the management and distribution of a person’s assets and properties during their lifetime and after their death. It is a comprehensive approach to ensure that an individual’s wishes are carried out and their loved … …