A Hot, New Planning (And Marketing) Opportunity:
Fixing Old “B” Trusts
Whether you’re an estate planning attorney, CPA or financial advisor, you’ve undoubtedly run across the following situation (or will).
You are meeting with the surviving spouse of a married couple. When the other spouse died, a “B” Trust (also known as a Credit Shelter, Bypass or Exemption Trust) was established to hold a portion or all of the decedent’s assets. That may have seemed good estate tax or distribution planning at the time it was set up, but now that B Trust presents a host of problems - - including, but not limited to:
- Lack of up-to-date, appropriate spendthrift, divorce and creditor protection for the beneficiaries who will inherit after the surviving spouse.
- Lack of Dynasty Trust provisions to protect the estate for future generations.
- Worse yet, the trust may no longer even be needed for estate tax purposes and now won’t get a basis step-up when the surviving spouse dies.
Your client would like you to fix these problems, but how do you do this when you’re stuck with an irrevocable B Trust? Believe it or not, there are ways to fix that old B Trust!
Join us and nationally renowned estate and asset protection planning attorney, Steven J. Oshins, J.D., AEP (Distinguished), for a timely and informative presentation entitled, “Fixing Old B Trusts”.
On this 60-minute presentation, you will learn:
- Why using statutory modification procedures to fix an old B Trust - - if they even exist in your state - - may be difficult or impossible to use, as well as expensive.
- Why what’s called “decanting” is usually the easier, more effective, and cheaper alternative!
- How to utilize decanting even when your B Trust jurisdiction doesn’t have a decanting statute!
- How decanting, when done properly, can achieve all these outstanding benefits:
- Strengthen the spendthrift, divorce and creditor protection features of the B Trust, for generations to come.
- Save federal income taxes by using lower bracket beneficiaries.
- Save state income taxes on undistributed income.
- Permit a basis step-up for B Trust assets when the surviving spouse dies.
- And much more!