Irrevocable Gift Trusts in Michigan | Michigan Estate Planning Lawyers

Irrevocable Gift Trusts

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There may be periods during your lifetime where you decide to provide a monetary gift to a loved one. Under federal tax law, the maximum amount allowed for a gift under the Internal Revenue Service 2017 code is $14,000. Anything gifted over this amount requires you to file a federal gift tax return. Any gifts below the limit are also excluded from the federal estate tax when you pass away. The federal estate exemption value is $5,490,000 for 2017.

One way to have gifts passed on to your heirs is through an irrevocable gift trust (IGT). The trust is created to allow the passage of the money to your life ones allowing them to use the funds immediately. If a beneficiary does not withdraw any of the funds during your life, they will not have to pay any estate tax on the money in the trust since it is excluded from the overall estate.

Depending on the value of your gross estate an IGT may be a good option for you. Contact our team at Grewal Law PLLC to go over how a gift trust may help with your overall estate planning. Call us today for your no obligation quote at (888) 211-5798.

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A History Representing Victims of Sexual Abuse Grewal Law, PLLC Represented One Third of the Survivors in the MSU and Larry Nassar Lawsuits, Who Reached the $500 Million Settlement. Grewal Law is part of a legal team currently representing over 100 survivors of Robert Anderson at University of Michigan. We are pleased to announce a $490 million settlement in principle.

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Understanding Gift Trusts

One important fact to note your gift is not fully protected until three years has passed since its creation. Anything included in an Irrevocable Gift trust will be counted in your gross estate for the first three years after the transfer takes place. Grewal Law PLLC’s skilled attorneys can help you understand how these rules will impact your plans and will go over options for protecting these funds.

Another important thing to recognize is an IGT cannot be amended after it is created. Therefore, it is important to ensure the trust is the right fight for your estate and your loved ones. These trusts, like an Irrevocable Life Insurance Trust, are set up in order to keep things of monetary value from being counted towards the allowed limit related to the federal estate tax.

Similar in setup to an irrevocable life insurance trust, you will designate beneficiaries to receive the gifts in the trust. With an IGT you have the opportunity to designate one or more beneficiaries to the trust. Once the trust is created the beneficiaries have the right to demand a distribution of the assets within the account with reasonable notice. Typically a withdrawal notice must be provided to all the beneficiaries within 30 days of a distribution.

When the withdrawal is made the monetary value is not taxable since it falls under the designation of a gift. The amount is not subject to the gift or estate tax safeguarding the funds you have placed in the account. If you have any questions about a gift trust and how it can be a part of your estate contact us today.

Considerations with Gift Trusts

We understand how an IGT works and how it can be an important part of your estate plan. While serving as your legal counsel, we will go over all the things you need to consider regarding any type of trust including Michigan law. Since 2010, all trusts default to revocable unless otherwise specified in the state. We will ensure your trust is set up the right way to avoid any potential problems. We are ready to answer any questions you have regarding state law and how it may impact your plans.

Another important consideration is who will be the trustee of the account. While you are alive you can serve as the trustee or co-trustee. The trustees of an IGT are the ones who make decisions regarding the investment and will handle the distributions under the rules of the trust. We can provide ideas on who you may want to consider to serve as the trustee.

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Sexual Abuse

We represented 111 of the 333 survivors in the lawsuits against Michigan State University for sexual abuse involving the former MSU doctor, Larry Nassar.

Grewal Law has been amazingly empathetic and forward-thinking through this very emotional and trying time.
- Anonymous
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Irrevocable Gift Trusts & Your Estate

Anyone thinking about an irrevocable gift trust should call Grewal Law PLLC today. We are ready to help you weigh all the trust options available to help you. We will guide you through the process of setting up a trust. The Michigan estate planning attorneys at our firm are ready to help you.

Call us for a free quote at (888) 211-5798.

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