Definitions
This type of trust does not allow indian giving
What is an irrevocable trust
This type of trust is the opposite of what a husband would be if he got caught cheating on his wife
What is a living trust?
Originated and funded by an individual during their lifetime.
This person gets all in your business, holds your assets hostage, and still expects a thank you card.
And it is not your financial coach
Who is the Trustee?
Say these words and your assets disappear from your reach and taxable estate like roaches when the light comes on.
What is funding the irrevocable trust?
Like Russell Simmons and Epstein Island, this kind of trusts went on spring break in the Cayman Islands and hasnt paid taxes since
What is an offshore irrevocable trust?
We work our assets off and do all the work for VITA for free and Darryl reaps the benefits and takes all the credit. Darryl is called what?
(the answer is not an a$@hole)
What is the beneficiary?
The person who receives benefits from the trusts assets.
This type of trust happens when Church Momma Connie gets up on Sunday with her wig cocked to the side and tells the church about how good GOD has been
Testamentary trust
Created by a will - the trust is outlined in the deceased will and activated by probate.
trustee managed
generally used to protect minor children and supporting dependents
When yo momma realized that her trust wouldnt let her buy that fourth Louis Vitton purse, she blamed your daddy for not forking over his pay check and this invisible villian?
What is loss of control of assets?
When assets are placed in a trust, the original owner (the grantor) intentionally gives up control of those assets—this is by design, not usually a negative event.
Trusts becomes the legal owner of the assets
trustee has authority to do what he/she/it wants
grantor has limited or no access to the assets
Much like the night you woke up hung over and naked, this unexpected love letter from the IRS makes you question every life decision since moving your assets?
What is a gift tax notice
Common triggers:
Exceeding the annual exclusion (18k in 2024)
Failing to file a Form 709
Inadequate disclosure - not giving all the details
Like a Vegas wedding with paperwork or a late night with your ex and a bottle of Mad Dog 20/20 - this trust is binding and you are probably regretting it.
What is an irrevocable trust?
Run my money!!!
What the IRS expects when you transfer assets into the trust if the value exceeds the annual exclusion.
What is Gift tax?
Most black folks dont have this so they use go fund me...
This type of trust determines how many fights will happen after the funeral
What is an Irrevocable Life Insurance Trust (ILIT)
created during the insured's life time that owns and controls a term or perm life insurance policy/s. Trust can manage and distribute the proceeds that are paid out upon the insureds death.
Steve and nem tried to crack it, Tyrone tried to break in it, and Shaquanda tried to run it over. Despite all of that, this document is still standing and bossing people around long after NaeNae died.
What is an irrevocable trust agreement?
Grandpa R. Kelly left you his 4play album. The market value of the album at his death made you fall up the stairs.
What is a Step up in Basis
When the bill collector calls to collect and you say "you have the wrong number"
and
When Quita only reports half of her income from working on Lisbon all night
What protection from creditors and reduction of estate taxes?
The primary benefit of an irrevocable trust is that it provides protection from creditors and reduces estate taxes
Get your hand out my pocket!!!!
Prevents your beneficiaries from buying $100 worth of Chic Fil-A every day.
What is a Spendthrift Clause?
Prevents beneficiaries rom squandering assets or credits from accessing them.
You create this type of trust for Lil Ray Ray that eats boogers and rides the little yellow bus
What is a special needs trust?
For disabled beneficiaries without affecting government benefits.
When your spouse really loves you more than the side piece, this type of trust comes into play.
What is an irrevocable QTIP trust?
designed to provide for a surviving spouse while preserving control over how assets are distributed.
The IRS wants you to tell all your business using this form
What is Form 1041
Form used to report income, deductions, and distribution for trusts.
Puffy put all of his assets in his momma's name.
This is what happens to the assets in an irrevocable trust when the grantor declares bankruptcy.
What is nothing?
The assets in a irrevocable trust are protected from creditors because they no longer belong to the grantor. (There are exceptions)
When your kids were your test dummies for parenting and you dont like how they turned out, you do this.
What is Generation Skipping Transfer Tax?
When assets are passed to grandchildren or beyond skipping the "kids".
This type of trust makes sure the kids can go without begging. The rest of the money goes toward the pastor's jet.
What is a Charitable remainder trust?
Provides income to beneficiaries, with remainder going to charity
All about the Benjamins!!!
Your spouse has money for their lifetime
What is a QTIP trust
When you go by Elizabeth during the day and Candy the stripper at night, this term comes into play.
What is the Alter Ego Doctrine?
When a trust is set up and it is a facade and the grantor remains in control. Trust is the same as the grantor.
Batman vs Joker
Irrevocable vs Revocable