Tips for Holding Administrative Powers in a Trust Without Negative Transfer Tax Consequences

Alan S. Acker discusses how a settlor can retain a certain amount of control over a trust without incurring estate or gift tax inclusion. Specifically, when a trustee is limited by "ascertainable standards" for disbursements towards beneficiaries, estate tax inclusion can be avoided. Mr. Acker also notes the tax benefits of Crummey withdrawal powers for trusts that want to utilize the annual gift tax exclusion.

See Alan S. Acker, "Keeping Administrative Powers Without Adverse Transfer Tax Consequences," bna.com (Oct. 12, 2011).

Posted by Andrew Hodes, Associate Editor, Wealth Strategies Journal.