All these questions are interesting as are the answers. However neither the question nor answer get to the essence of why we use trusts and their ultimate purpose--protection.
Trusts are used to protect someone or something (property) from someone or something (taxes). As examples think about protecting these folks:
1. Your spouse.
2. Your kids.
3. An elderly loved one.
4. Someone at risk.
5. Someone with a disability.
Things we might protect against include:
1. Poor money management.
2. Creditors.
3. Predators.
4. Taxes.
5. Addictive behavior or drug addiction.
So when you ask a question about whether a trust might fit into your planning ask if there is someone you want to protect, something you want to protect and what risks you want to protect against.
Bernie Greenberg
