Category Archives: Delaware Asset Protection Trusts

Taxation of Grantor Trusts

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Tax News & Comment — May 2013

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IRS Ruling Provides Basis for Asset Protection Trust in Nevada

I.    Tax & Asset Protection Benefits of PLR 201310002.   New York imposes among the highest level of income tax of all states. New York City residents pay even more tax for the privilege of residing there. Income is taxed to … Continue reading

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DELAWARE ASSET PROTECTION TRUSTS ECLIPSE OFFSHORE ENTITIES

EPTL § 7-1.3 provides in stark language that “[a] disposition in trust for the use of the creator is void as against the existing or subsequent creditors of the creator.” This prohibition against self settled spendthrift trusts has led some New York residents to create asset protection trusts in exotic places such as the Cayman or Cook Islands, or in less exotic ones, such as Bermuda or Switzerland. Continue reading

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Importance of Trusts in Estate Planning & Asset Protection

A trust beneficiary possesses an equitable interest, but not legal ownership, in trust property. Creditors of a trust beneficiary therefore cannot generally assert claims at law against the beneficiary’s equitable interest in trust assets. However, under common law, a settlor … Continue reading

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Delaware Dynasty Trusts

Traditionally, trusts were viewed primarily as a means to protect immature or dysfunctional beneficiaries from themselves. Traditional trusts typically terminated when a minor child attained a certain age. Dynasty Trusts, on the other hand, seek to maximize all of the benefits of the trust arrangement, which include asset protection and tax savings, as well as the traditional objective of protecting immature or spendthrift persons. In fact, the Dynasty Trust can serve as the centerpiece of an estate plan. Continue reading

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