Trusts to consider

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Trusts to consider

Types of TrustsPossible Uses
Revocable Living TrustAvoid probate, retain control of the assets during your life, and protect assets and yourself if you become disabled.
Irrevocable Living TrustAvoid probate and give up control of certain assets to reduce your taxable estate, and provide creditor protection.
Lifetime TrustLeave assets to beneficiary in trust to assure professional management, protect assets from creditors and ex-spouses, and reduce estate taxes on beneficiary’s death.
Grantor-Retained Annuity Trust (GRAT)tCan be used to transfer assets at reduced estate and gift tax cost.
Qualified Personal Residence Trust (QPRT)Can be used to transfer a residence (or values of residence) at reduced estate and gift tax cost.
Credit-Shelter Trust or Bypass TrustProvide for maximum use of the unified credit in the estates of both spouses.
Qualified Terminable
Interest Property Trust (QTIP)
Provide income from trust assets to your spouse for life and qualify for the marital deduction, but, upon your spouse’s death, regain the income for yourself and retain control over who will receive assets.
Charitable Remainder TrustMaximize use of appreciated assets, provide income to you or other family members, then gift assets to charity to receive a current income tax charitable deduction.
Charitable Lead TrustProvide income to charity and, ultimately, can be used to transfer trust  assets to children or grandchildren at a greatly reduced gift and estate tax cost.
Irrevocable Life Insurance TrustLeave insurance proceeds to beneficiaries gift- and estate-tax-free.
Generation-Skipping TrustLeave assets for your grandchildren (and more-remote descendants) while taking advantage of the $1 million exemption ($2 million for married couples) from the generation skipping tax.
Defective Grantor TrustsUsed to increase gifted assets to younger generation without additional gift taxes.
Minor Trusts
• 2503c Trust
• The Extra-Crummey℠ Trust
Allow gifts to qualify for the $10,000/$20,000 annual gift-tax exclusion.
Perpetual Trust (Millennium Trust℠)Provide for a long-term trust that saves estate and gift taxes while increasing the family wealth, using the Alaska jurisdiction.
Asset-Protection Trust (Alaska Asset-Preservation Trust℠Maximize protection of assets from potential creditors while retaining benefits and control, using Alaska jurisdiction.
Alaska Community Property TrustAllows married couples who live in separate property states, (and even more-restrictive community property states) to get a double step-up in basis on selected assets on the death of first spouse. A significant income- tax advantage.