Legal Question in Wills and Trusts in Michigan
Can an irrevocable trust specify that the beneficiaries can not take money from the trust until a future date? For example:
a. When each beneficiary turns 30 (or some age)?
b. When the creator of the trust dies?
My father is concerned that he may have more money in his estate than the personal exemption ($1 million in 2011). He's wondering if an irrevocable trust could be used to reduce the value of his estate so it would not be subject to estate taxes (55% in 2011).
Thanks.
Marc
Asked on 7/21/10, 2:16 pm
1 Answer from Attorneys
JASSI SACHDEV
LAW OFFICES OF JASSI S. SACHDEV, P.C.
The answer to your question(s) is maybe yes. A comprehensive review of the assets including possible life insurance proceeds is needed to figure out why the estate would exceed the personal exemption limit and by how much.
Best - JS
Answered on 7/21/10, 7:19 pm