A major advantage of an irrevocable trust is the tax benefits it will provide you and your family. A grantor retained income trust can help provide a sound foundation in order to assist with saving money on taxes.
This type of trust allows the grantor to transfer a certain amount of property to a trust. You will continue to receive income from the property from the management of the assets in the trust over a specific period of time. When this time period is over, the trust will be legally “ended,” and any remaining amount is distributed to beneficiaries.
In principle, this type of trust works similarly to the charitable remainder trust, except that the property will not go to any type of charity organization. Rather, the property will be transferred to beneficiaries, which can include family and relatives. For example, you may want to place your family home into the trust, but wish to still live in the home for now. In such cases, your right to live in the home may be considered part of your income.
Like irrevocable trusts, a grantor retained income trust is not amendable, so it is important to think carefully before you create this type of trust. The team of experienced estate-planning attorneys at Citadel Law Corporation can provide you with the tools you need to get started. Contact them at (800) 662-0882 today and set up a consultation.