California Estate Planning, Wills & Trusts
The Law Offices of Laurie Shigekuni
 

Office Locations::


2555 Ocean Avenue
Suite 202
San Francisco, CA 94132

225 S. Lake Ave.

Suite 300

Pasadena, CA 91101
 
Contact Information

Ph:   (415) 584-4550
        (800) 417-5250

Fax:  (415) 584-4553

contact@calestate
planning.com

Other Types of Trusts


Specialized trusts are available for a variety of needs. Many are irrevocable (unchangeable) trusts that help reduce estates to minimize potential federal estate taxes. Examples include life insurance trusts (for large life insurance policies); charitable remainder trusts (for donations to charities), and qualified personal residence trusts (for a primary residence and one vacation home). Other types of trusts enable people to ensure care for dependents. These include trusts for minors and special needs trusts for people receiving disability benefits.


Life Insurance Trusts

Life insurance trusts help exclude the proceeds of a life insurance policy from the taxable estate of the insured. For larger estates, a life insurance trust can be a useful tool to reduce federal estate taxes. These trusts can use life insurance proceeds to pay estate taxes and other obligations.


Charitable Remainder Trusts

Charitable remainder trusts are useful for people who would
like to donate part of their estate to charity eventually, but only after it has provided support for loved ones who survive the giver. In a charitable remainder trust, beneficiaries are designated to receive income from the trust for a specific period of time, or possibly their whole lives. The remaining assets in the trust then pass to the named charity. These trusts allow the trust's creator to potentially avoid estate taxes and to obtain an income tax deduction for the gift to charity.


Qualified Personal Residence Trusts (QPRTs)

QPRTs are irrevocable trusts in which the settlor retains the interest in his or her personal residence or vacation property for a term of years. The remaining interest in the property passes to the beneficiaries. The settlor retains ownership of the real property until the term expires or until he or she passes away.


Trusts for Minors

Transfers to minors may reduce the estate taxes of a donor by eliminating future appreciation of a gift from the donor’s estate. Trusts for minors allow for the prolonged management of assets transferred to a minor. Depending upon the wishes of the settlor, the duration of the asset management and the distribution amounts will vary.


Special Needs Trusts

Special needs trusts allow for a disabled or aged beneficiary of a trust to keep his or her government benefits while receiving funds from a trust.


Qualified Domestic Trusts (QDOT)

This is a type of trust used for married people when one
of the spouses is not a U.S. citizen. If the citizen spouse is the first to pass away, and a QDOT provision is in place, the QDOT can allow federal estate tax to be deferred until the death of the noncitizen surviving spouse.


Qualified Terminable Interest Property (QTIP) Trusts
A QTIP trust is another way for married couples to take advantage of provisions in federal estate tax law. A QTIP trust pays income from the trust to the surviving spouse for his or her lifetime. During the surviving spouse’s lifetime, he or she is the only person who may receive distributions from the trust. The executor of the deceased spouse’s estate must decide whether to pay estate taxes at the time of death of the deceased spouse or defer them to be paid by the estate at the death of the surviving spouse.

 
The Law Offices of Laurie Shigekuni
 

Office Locations::


2555 Ocean Avenue
Suite 202
San Francisco, CA 94132

225 S. Lake Ave.

Suite 300

Pasadena, CA 91101
 
Contact Information
Ph:   (415) 584-4550

        (800) 417-5250

Fax:  (415) 584-4553
contact@calestate
planning.com

 

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Legal Disclaimer: The information on this Web site is intended to be used as general information only. Nothing on this Web site constitutes specific legal advice. You should always speak with an attorney first before engaging in any estate planning. In compliance with the requirements of IRS Circular 230, we further inform you that any writing about tax law on this Web site is not intended to be used, or can it be used, to avoid penalties that may be imposed under the Internal Revenue Code.
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