Portrait liquidating trust
Typically, the non-skip beneficiary chosen is a charity so that the HEET can continue in existence for as long as the charity exists.
Planning Tip: A HEET is frequently created by a taxpayer who has already used their GST exemption, has charitable goals and wishes to create an education and health care safety net for future generations.: A DING is a non-grantor self-settled irrevocable trust that gives the grantor creditor protection and avoids state income tax on undistributed ordinary income and capital gains.
Planning Tip: An alimony trust may be useful if a business owner cannot or does not want to sell an interest in the family business to make payments to his former spouse or if the business lacks the liquidity to redeem the stock of the former spouse.
It can protect the payee in the event the payor should die or become financially insolvent before all payments have been made.
Some of those other types of trusts will fill an estate planning need like no other arrangement can.
A trust is a fiduciary relationship between the trustee and the beneficiary and between the trustee and the grantor.The biggest problems with an oral trust, of course, are interpretation and enforcement.Disputes about the terms or even the very existence of an oral trust are common. They are an exception to the general grantor trust rules in that the income paid from these trusts to an ex-spouse under a dissolution or separation decree/agreement will be taxed to the payee (the ex-spouse) and not to the grantor.The Uniform Trust Code (UTC) does acknowledge that under certain circumstances a trust may be created orally.However, oral trusts of real property are not permitted in some states.
Delaware was the first state to allow self-settled asset protection trusts. States where domestic asset protection trusts can be established now include Alaska, Nevada, New Hampshire, Rhode Island, South Dakota, Tennessee, Utah and Wyoming.