Investor Education: Tax and Estate Planning – Minimizing Taxes in a Taxable Estate

By Wayne Cooper Today we are going to discuss minimizing taxes in a taxable estate. The two transactions we are going to discuss are low interest rate loans to children and Grantor Retained Annuity Trusts or GRATs. For purposes of these transactions, the IRS establishes a monthly hurdle rate. If these rates or greater are used in these transactions, then …

Investor Education – Tax & Estate Planning: Restricting a Beneficiary’s Access to Principal

By Wayne Cooper There are two ways a beneficiary can access principal of a trust. A beneficiary may be entitled to an automatic distribution or an allowable withdrawal from the trust or a trustee could have discretion in making distributions to the beneficiary.  In the past, many estate planning lawyers would provide a beneficiary access to trust principal on attaining certain …

Investor Education: Restricting Your Children’s Access to Trust Income

By Wayne Cooper Today we are going to discuss restricting your children’s access to trust income. Trust income is generally the income earned by the trust in the form of interest and dividends. Parents today are concerned the large inheritance will not empower their children to succeed but instead could enable their children to sit back and do nothing other …