Gift Splitting Made Easy

There are many reasons why husbands and wives might want to create trusts that allow their spouses to withdraw income or principal. The most obvious is that allowing access to a trust confers extra financial security on the spouse. But there's a problem: Withdrawal rights can create additional gift tax, estate tax and generation skipping transfer tax. There are ways to minimize such taxes. One way

There are many reasons why husbands and wives might want to create trusts that allow their spouses to withdraw income or principal. The most obvious is that allowing access to a trust confers extra financial security on the spouse. But there's a problem: Withdrawal rights can create additional gift tax, estate tax and generation skipping transfer tax.

There are ways to minimize such taxes. One way is to use annual exclusion withdrawal rights in trusts. Trust documents are ty

All access premium subscription

Your subscription will include 12 months of Trusts & Estates magazine and access to premium content on WealthManagement.com.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish