Is an intentionally defective dynasty trust an effective estate planning tool?

Article Abstract:

The author discusses the intentionally defective dynasty trust and evaluates its use as an estate and tax planning vehicle in comparison with other trust forms.

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Year-end planning review: some advantageous techniques should only be used with care

Article Abstract:

Tax advisers should advise their clients to use caution before forming family limited partnerships (FLPs) or adopting IRC section 419A welfare benefit plans which have been heavily marketed. The IRS showed disfavor in 1997 and 1998 for the use of FLPs in estate planning. The IRS Employee Plan and Exempt Organization division in its publication, the 1999 Continuing Professional Education Manual, has indicated that Voluntary Employee Benefit Associations (VEBAs) and Multiple Employer Welfare Associations (MEWAs) very likely will fail the control test for tax-exempt organizations.

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Asset protection planning: know the options and be wary

Article Abstract:

Family limited partnerships, family limited liability companies, or family holding companies can be more useful family financial planning tools than asset protection trusts. Such entities must be carefully planned and not created for unethical asset protection purposes. Clients should be aware of possible negative tax consequences because the IRS disfavors these forms of family business entities.

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