What is a Credit Shelter Trust? — new trust video on family trusts funded with Estate Tax Free money
What is a credit shelter trust? If you are the beneficiary of a family trust, like a revocable trust Boca Raton which becomes ir-revocable upon death and administers or runs your inheritance. There is a new, free, credit shelter trust video you can view online. If you are a beneficiary of a trust Palm Beach, here is the link if you want to view the Florida trust video: https://www.youtube.com/watch?v=y80JuHvVlqk&feature=youtu.be
Why do credit shelter trusts matter?
- Many estate planning lawyers, and definitely will and trust attorneys Palm Beach, all writerevocable trusts for their Palm Beach Gardens estate clients
- The revocable living trust has become the main way to leave inheritances and give away your wealth
- Revocable trusts are popular with estate lawyers who write trusts, can be writtenquickly, and are now widely understood & accepted
- In other words, revocable living trusts are not just for the super wealthy or celebrities anymore
- At the death of the creator of the revocable trust, also called a living trust by many probate lawyers Delray Beach, one’s “typical” revocable trust gets split into two sub trusts:
- 1 of the family trusts is often referred to as a Marital Trust and one is often referred to as the Credit Shelter Trust
What is a credit shelter trust?
- Think of a credit shelter trust as a basket of estate tax free assets
- A credit shelter trust is typically funded with the largest amount of money you can leave at your death free of the US Estate Tax
- Now, note that in 2014, each person can actually leave over $5.3 Million free of the US Estate Tax
- This amount is often referred to by tax lawyers Palm Beach as the Lifetime Exemption
- So, the credit shelter trust may also be called the family trust or the unified credit trustor the lifetime exemption trust
- Good news: you can put a lot of money away for heirs, loved ones, children and surviving spouses free of the US Estate Tax
- Bad news: most credit shelter trusts have, well, trust terms, which tell the trustee when and how to distribute — or NOT distribute — trust money to the Palm Beach trust beneficiaries. So, the whole concept of keeping money in trust is that someone, called a Trustee, runs the trust. In other words, your inheritance does not get thrown in your lap or get wired to your checking account. You can’t access your inheritance from the ATM.
- But if you ask any trust lawyer Boca Raton, they will tell you that there are ways under the Florida Trust Code and Florida Trust Law to get trust beneficiaries more trust money