30 DIFFERENT TYPES OF TRUSTS

Domestic Asset Protection Trust – Ohio Legacy Trust A Domestic Asset Protection Trust (DAPT), also known as a Legacy Trust in Ohio, is a type of self-settled trust that provides asset protection to the creator. The level of protection may vary depending on the state where the creator resides. In Ohio, the Legacy Trust statute ORC 5816.01 et […]

Why Would You Need an Incomplete Gift Non-Grantor Trust? While the gift is incomplete for tax purposes, the trust is separate from the grantor (non-grantor trusts as incomplete gift trusts with a testamentary power of appointment and a non-fiduciary inter vivos power of appointment for health, education, support, and maintenance). This type of trust is

A Qualified Personal Residence Trust (QPRT) A Qualified Personal Residence Trust (also known as a QPRT), allows the transfer of your residence out of your estate at a lower value for gift tax purposes. In this case, the grantor retains the right to live in the house for a number of years rent-free, which reduces

Why would you need this type of Trust? A Qualifying Domestic Trust (also known as a QDOT) is helpful if you have a non-citizen spouse. A non-citizen spouse does not qualify for the marital deduction if transferred outright. What are the standards for a QDOT? This is not an issue if you have a non-taxable

Why would you need this type of Trust? A Spousal Lifetime Access Trust (SLAT) can be useful for several reasons. First, it can help a married couple reduce their taxable estate by transferring assets to the trust. This can be especially helpful if one or both spouses have a large estate that may be subject

Why would you need this type of Trust? A Grantor Retained Annuity Trust (also known as a GRAT) is used to transfer assets from one generation to the next without using a meaningful amount of the lifetime gift tax exemption/estate tax exemption. A GRAT is a statutory device where you make a transfer and, in

Why Would You Need a Dynasty Trust? The Dynasty Trust is used for estate tax, creditor, and divorce protection. The Dynasty Trust continues for generations, and no transfer tax is paid upon the death of any future generation. Is the Dynasty Trust Irrevocable or Revocable? The Dynasty Trust is irrevocable, meaning once it is created

Why You May Need a Bypass Trust If you have a taxable estate, the Bypass Trust can be used to fund with all or a portion of the deceased spouse’s exemption. The Bypass Trust is designed to bypass the spouse and reach the children. Previously, this was used more frequently before the creation of Portability. Portability

Why Would You Need This Type of Trust? To make transfers to grandchildren without using your Generation-Skipping Transfer (GST) Tax exemption. A 2642(c) Trust is used when you have: Is It Irrevocable or Revocable? The 2642(c) Trust is irrevocable, meaning once it is created it cannot be changed. Is a Separate Tax Identification Required? The 2642(c) Trust

What is a Crummey Trust? A Crummey Trust is a trust created for the purpose of making gifts to the trust without incurring gift tax by utilizing the annual exclusion limit. This is done by granting the beneficiaries the right to withdrawal the gift. The trust is named after the taxpayer who won the right