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Creating an Operating Manual For Legacy Trusts

Best practices to avoid estate tax inclusion and unforeseen liabilities

Trusts are living entities and deserving of regular maintenance. Often, a trust is drafted, executed and then funded without an operating manual for the professional advisors and other parties. Unintentional noncompliance becomes more likely as the number of uninformed parties increases. Crafting a trust operating manual at inception detailing boundaries to grantors and beneficiaries will reduce the possibility that future transactions could cause estate tax inclusion and unforeseen income

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