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Irrevocable Trusts in South Carolina

 

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Irrevocable Trusts

An irrevocable trust is designed to protect your assets from income or estate tax. It cannot be amended or changed once it has been finalized absent court approval. Simply put, an irrevocable trust is an easy way to save money on taxes and protects you from creditors. The downside is that you cannot make changes once approved. Consider how much control you want and need through the different types of irrevocable trusts and their uses. Our experienced team can help walk you through each type of irrevocable trust and find the one that’s right for you. Contact Wiles today to learn more about how an irrevocable trust can save and protect your money.

 

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Qualified Personal Residence Trust (QPRT)

This holds the trustor’s primary or secondary residence and reduces its taxable value for estate purposes

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Grantor Retained Annuity Trust (GRAT)

Allows money to be transferred to heirs without any estate tax liability

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Testamentary Irrevocable Trust

Funded after the trustor’s death based on the will

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Irrevocable Life Insurance Trust

Avoids federal income tax on life insurance proceeds to the first spouse

 

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Gift in Trust

Set up by the trustor to avoid taxes on gifts that will exceed the annual gift tax exclusion amount (presently $15,000 per individual)

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Inheritor’s Trust

Set up by the beneficiary to protect a future inheritance from creditors and also from federal estate taxes

 

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Beneficiary Defective Inheritor’s Trusts

Freezes the value of assets for gift and estate tax purposes when such assets are sold to the trust by a beneficiary “seller” who has the added benefit of being eligible to receive future discretionary distributions from the trust.

 

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Stand-alone Retirement Trust (SRT)

Set up by the trustor as the beneficiary of a retirement fund to protect that retirement account from taxation and creditors; if the designated beneficiary is a minor it eliminates the need for the trustor to name a custodian

Advantages of an Irrevocable Trust

  • Once transferred, assets are no longer considered to belong to the trustor
  • Protection from creditors, lawsuits, and bankruptcy laws
  • Not typically counted as part of the value of your estate
  • Reduction of taxes on your heirs
  • Prevents the misuse of your assets
  • Cannot be altered outside of the statutory procedures allowed
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