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Trust Definitions

MoneyCharitable Remainder Trust (CRT)In return for the irrevocable transfer of cash or property to the trustee, a certain percentage or amount of the annual income from the property is paid to you and/or another named beneficiary(ies) for life or for a specified term of years. The remainder interest in the property would then pass to your own foundation.

You would be entitled to a federal tax deduction for the present value of that charitable remainder interest, which is based on the number and ages of life income beneficiaries and percentage of payout you and the trustee agree upon. Some advantages of the charitable remainder trust are:

Capital Gains Tax Postponed If you fund the trust with appreciated property, you will eliminate or postpone capital gain on the appreciation, and the trust will be funded with the full fair market value of the gifted asset.

Charitable Remainder Annuity Trust (CRAT)These trusts provide that a specific fixed dollar amount (at least 5% of the initial value of the assets at the time the trust is created) be paid at least once a year to the beneficiary(ies) for their lifetime(s) or for a term of years.

Charitable Remainder Unitrust (CRUT)This type of trust provides that a fixed percentage (at least 5% of the current fair market of the trust) is paid to the beneficiary(ies) at least twice a year. The amount paid to the beneficiary(ies) will vary on a yearly basis according to the fluctuating value of the trust.

Pooled Income Fund (PIF)These are trusts into which donors irrevocably transfer cash or other property, contributing the remainder interest in the property to their foundation. Each donor is paid the annual income based upon the proportionate share of assets, which he or she contributed to the total fund property.

Charitable Lead Trust (CLT)These trusts provide income, either a percentage or a specified amount, to the donor’s foundation for a specific number of years. At the termination of this period, the principal is returned to the donor or others whom the donor has designated. Avoid probate by controlling your assets while you are living

A Dynasty Trust - is a trust that is designed to hold assets in the trust without direct ownership being transferred to any beneficiary. Instead, successive generations may receive distributions from trust assets or assets that remain held in the trust, thus allowing for future benefit and growth.

Personal and Business Trusts

Because of its unique regulatory and legal climate, Nevada has become the State of choice for forming Trusts. We offer Nevada residents and non- residents alike, access to Nevada based services, including trusts, custody and investment man-agement services, so they can take advantage of Nevada's liberal body of trust, corporate and tax law. Clients benefit from experienced administration, superior personal service and the ability to make important decisions quickly.

Once the Court gets involved it usually stays involved until you recover or die. The Court, not your family, controls how your assets are to be used to care for you. Probate is expensive, embarrassing, time consuming and difficult to end even if you recover. Since the process does not replace probate, your family will have to go through the Court system at least twice. A Family Living Trust prevents court intervention. See our Family Living Trusts page for more on this Trust.

A Management Privacy Trust™ - Avoid probate court by using Management Privacy Trusts™ (“MPTs”). These trusts can also be used to prevent your Family Limited Liability Limited Partnership from being used by your creditors to discover your most valuable assets.

A Wealth Protection Trust™ - a Wealth Protection Trust™ ("WPT") provides asset protection and financial privacy without having to leave the country. These trusts can hold a variety of assets for the beneficiaries in a safe manner and work best with other legal entities. The trustee can hold, administer,manage, and distribute the trust's assets to its beneficiaries without interference by the settler’s subsequent business or legal activities. Claims and legal actions against the settler do not impact the trust or its beneficiaries as long as no fraudulent conveyance is involved in its formation and the client acts while there are no legal storms brewing on the horizon.

A Personal Property Trust (PPT) gives you privacy because the Trust is not a public record. When used as the General Partner, your personal name does not appear and allows you control by directing the Trustee.

Life Tenancy Trust or Life Estate Deed protects your right to a permanent interest in your home and can be placed into a Family Limited Partnership.

An Irrevocable Life lnsurance Trust (ILIT) eliminates paying estate tax on life insurance and pays the funds directly to beneficiaries allowing for a direct by-pass of your declarable estate.

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