Tax & Accounting US, CCH Research & Learning Wolters Kluwer
Creating Creditor Protection Trusts Must Extend Beyond the Spendthrift Provision
In discussing the creditor protection of trusts, practitioners almost always focus first on whether the trust has a spendthrift provision and the protections afforded by the spendthrift provision. In our opinion, this is much like focusing on whether your car has a “Police Up Ahead Alerter” when in fact your car cannot go greater than 30 mph.
Sympathetic to the claims that so-called warehousing is generally bad. Another common concern is that because DAFs are generally pass-throughs to other charities, various sorts of donor abuses can occur and are more likely than when charitable contributions go directly to “real” charities. Such abuses range from sophisticated estate-planning transactions down to donors running contributions to athletic departments for tickets through a DAF to obtain a 100 percent charitable deduction rather than the allowed 80 percent deduction.
Fiduciary and personal interests occasionally conflict in the investment or management of trust property. Transactions which are “affected by a conflict” are generally voidable by an affected beneficiary.
In order to review Beyer and Dacus’ article that advises estate planners on how to advise cannabis users and growers, I had to first stoke up a joint, to get in the proper mood. Actually, I didn’t. The article advises that if I did use marijuana, dire consequences could occur, “emotional disturbances, the total inability to direct thoughts, the loss of all power to resist physical emotions,” and a few other bad things, like temporary memory loss.
Illinois Institute for Continuing Learning Education
An overview of the rights of the spouse of a participant in a qualified retirement plan, the obligations of the qualified retirement plan with respect to the spouse, and the treatment of domestic partners with respect to retirement plan benefits under current law.
As estate planners, we often focus on our role as strategists, planners that set up a workable estate plan. Examples include establishing a family limited partnership to achieve estate tax discounts, or creation of one or more trusts for estate tax reduction, or establishment of a trust for creditor or spousal protection.