Drafting Irrevocable Trusts: Flexibility Mechanisms, Retaining Access and Control, Distributions, and Other Issues

This CLE webinar will provide estate planners with a detailed analysis of key challenges and pitfalls to avoid when drafting irrevocable trusts. The panel will discuss the legal framework and critical considerations for irrevocable trusts, the pros and cons of trust protectors, beneficiary control and distribution provisions, retaining settlor flexibility and access, redirecting trust assets, and other vital considerations.

When structuring an estate plan under current tax law, decreased asset values and lack of guidance on certain tax rules may cause many to hesitate to part with certain assets. Trust and estates counsel use irrevocable trusts to protect assets and provide a level of flexibility to adapt to changing circumstances.

Counsel must understand income and transfer tax rules related to irrevocable trusts, which assets can go into the trust, restrictions on who can serve as trustee, prohibited trustee powers, how to make distributions, and various tax considerations. Incorporating flexibility when structuring irrevocable trusts will allow those who affected estate or gift taxes to retain a degree of control. For others, these trusts and gifting may minimize income taxes, protect assets from claims, and address other vital issues.

Our panel will explain the legal framework and key areas of focus in drafting irrevocable trusts, the difference between grantor and non-grantor status, and how to use applicable rules to a client's advantage. The panelists will also explain drafting approaches for trusts that mitigate income and transfer tax consequences related to the transfer of assets.

Listen as our panel discusses the legal framework and critical considerations for irrevocable trusts, pros and cons of trust protectors, beneficiary control and distribution provisions, retaining settlor flexibility and access, redirecting trusts assets, and other key considerations.