| BUSINESSWEEK ONLINE : SEPTEMBER 27, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR
Tips for Setting Up Trusts -- Make sure your trust is a Crummey Trust. This lets beneficiaries withdraw money within a prescribed period after it is contributed, which allows benefactors to give the trust up to $10,000 a year free of gift taxes. -- Write in a spendthrift clause to protect the trust against the beneficiary's creditors, including those who sue for bankruptcy and divorce. -- Make sure the trustee of an insurance trust purchases the policy and transfers ownership to the trust. -- A trust whose beneficiary serves as its trustee should restrict the use of its principal to education, support, health, and maintenance. Otherwise, the trust's assets will become part of the beneficiary's estate. -- With a minor's trust, the parents should not have control over decisions to spend money for the child's support. Otherwise, they can be liable for income taxes on those sums. DATA: BANK BOSTON, J.P. MORGAN _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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RELATED ITEMS Gifts with Strings Attached TABLE: Tips for Setting Up Trusts A Trust for Minors: ``It Gives You Control'' INTERACT E-Mail to Business Week Online | |||
