RIVT – Revocable Inter Vivos Trust
1. Advantages -
a. Avoid probate,
b. Avoid FET for T if trust qualifies for the UMD,
c. Avoid FET for surviving spouse when dies if a proper bypass trust,
d. Manage assets for inept spouse or for children – if life interest only, no FET when spouse or kids die because interest terminated at their death,
e. Alzheimer’s trust – manage assets for old person.
2. Gift tax consequences of trust for children – qualifying trust is eligible for annual $10,000 exclusion, even though it is a future interest and not the usually required present interest.
a. Requirements (UGMA)
(1) Gift in trust for benefit of a minor
(2) Possession is postponed until minor is 21
b. Results – eligible for $10,000 annual exclusion
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