Unlimited Duration Trusts - Minnesota CLE

More documents

Recommendations

Info

Estate of Murphy v. Commissioner 71 T.C. 671 (1979) (Wisconsin): • IRS acquiesced in Murphy 1979 • Only reported case involving IRC § 2041(a)(3) • Tax court held: the exercised LPofA to create another LPofA did not spring Delaware Tax Trap because: – Under applicable Wisconsin law, the exercise of a LPofA did not commence a new perpetuities period. – Delaware Tax Trap was not violated in Wisconsin, – Wisconsin has/had a perpetuities statute expressed in terms of a rule against suspension of power of alienation [rather than] based upon the remoteness of vesting • States that follow the Murphy Case: – Pre 1986: Idaho, South Dakota and Wisconsin relied on Murphy case – Post 1986: Alaska (partial), Delaware (possible issue with LPA), Kentucky, Missouri, New Hampshire, New Jersey and North Carolina all relied upon Murphy. © South Dakota Trust Company, LLC – All Rights Reserved 6
Possible Future Transfer Tax Legislation – The Obama Budget Proposal • Federal RAP (Limit GST Exclusion)- 90 Years – Proposal would only apply to trusts created after enactment (grandfather existing trusts) – Previously proposed, but died • Non-tax reasons for Dynasty <strong>Trusts</strong> (promotion of fiscal & social responsibility) © South Dakota Trust Company, LLC – All Rights Reserved 7
Page 1 and 2: MINNESOTA CLE’S 39 TH ANNUAL PROB
Page 3 and 4: Why Establish a Family Bank Dynasty
Page 5: Modern No [or] Long Term “Rule Ag
Page 9 and 10: The Advantages of the Inter-vivos (
Page 11 and 12: Current Status of Transfer Taxes an
Page 13 and 14: How the Lifetime (Inter-Vivos) Dyna
Page 15 and 16: Two Major Types of Irrevocable Inte
Page 17 and 18: Possible Self-Settled Dynasty Trust
Page 19 and 20: Possible Answers for Both Estate an
Page 21 and 22: Summary: Self Settled Dynasty Trust
Page 23 and 24: Two Types of Dynasty Trust For Inco
Page 25 and 26: Popular No Income Tax Trust States:
Page 27 and 28: Typical Choices for Dynasty Trust T
Page 29 and 30: Types of Trust Administration •
Page 31 and 32: Advantages of a Directed Trust: •
Page 33 and 34: Typical Trust Protector Powers (Var
Page 35 and 36: Special Purpose Entity or Trust Pro
Page 37 and 38: Grantor as Investment Co-Trustee/Fi
Page 39 and 40: Discretionary Trusts: • Both Self
Page 41 and 42: Asset Protection: LLC’s and LP’
Page 43 and 44: Miscellaneous Asset Protection Cons
Page 45 and 46: Leveraging the Dynasty Trust - Prom
Page 47 and 48: Dynasty Trust - Enormous Size Poten
Page 49 and 50: • Larger Gift Tax Exemptions ($5M
Page 51 and 52: Arbitrage Over Note Interest of 1.0
Page 53 and 54: Promissory Note Sale (PNS) - Doctor
Page 55 and 56: Distribution Committee (Fiduciary,
Page 57 and 58:
Sample Incentive Family Bank Dynast
Page 59 and 60:
Summary: How to Structure a Dynasty
Page 61 and 62:
Four Levels of Protection: 1. Self-
Page 63 and 64:
Miscellaneous DAPT Considerations:
Page 65 and 66:
Typical Estate Plan Maximizing Gift
Page 67 and 68:
“Purpose Trust” Statute: • De
Page 69 and 70:
Summary of Popular Methods for Chan
Page 71 and 72:
Change of Trust Situs Followed by R
Page 73 and 74:
1. Modifying powers of appointment;
Page 75 and 76:
Unlimited Duration Rule Against Per
Page 77 and 78:
Domestic Trust Situs Comparison Sum
Page 79 and 80:
Disclaimer: These informational mat
Page 81 and 82:
Al W. King III, J.D., LL.M., AEP (D
Page 83 and 84:
Al W. King III, J.D., LL.M. Co-Chai
Page 85:
“The PPLI Solution (Chapter 6:
show all

Unlimited Duration Trusts - Minnesota CLE

Create successful ePaper yourself

Delete template?

Save as template?