- On November 23, 2016
Achieve Flexibility in Uncertain Times with Trust Protector Provisions
President-elect Donald J. Trump is scheduled to take office as the 45th president on January 20, 2017. One Trump campaign proposal was to eliminate the current estate and transfer tax system and replace it with a to-be-determined capital gains tax regime. This has created uncertainty and many clients are now questioning how their estate plans may be affected. The truth is that, at this time, nobody knows exactly what will happen to the current estate and transfer tax system. So, what should smart clients do now? In times of possible change and uncertainty, smart folks ensure their plans are flexible and are ready to adapt.
Given that many modern estate plans include both revocable trusts (that usually become irrevocable upon the mental disability or death of the trustmaker) as well as irrevocable trusts, a great first step in ensuring your estate plan is flexible is to include Trust Protector provisions. Properly drafted, this language permits a trusted family member or friend to appoint a third party to make appropriate changes to irrevocable trusts. This allows clients and their families to more easily adapt to a variety of future legal and tax changes. Including Trust Protector provisions in trusts is a great way to achieve planning flexibility.
If you would like to learn more about Trust Protector provisions, or other similar planning techniques, please consider calling Andrew Kelleher, David Buckley, Linda Fine, Robert Holland or Vas Russis at (847) 382-9130. This writing is for discussion purposes only and is not legal advice.