Massachusetts Fideicomiso de seguro de vida con fondos irrevocables donde los beneficiarios tienen derecho de retiro Crummey con la póliza First to Die con cláusula de supervivencia - Irrevocable Funded Life Insurance Trust where Beneficiaries Have Crummey Right of Withdrawal with First to Die Policy with Survivorship Rider

• Category: Fideicomisos - Irrevocables - Disposiciones para gastos indebidos
• State: Multi-State
• Control #: US-0675BG
• Format: Word

Description

An irrevocable trust is a trust that cannot be modified or terminated without the permission of the beneficiary. In most states, a trust will be deemed irrevocable unless the grantor specifies otherwise. Once the grantor has transferred assets into the tr A Massachusetts Irrevocable Funded Life Insurance Trust (IIT) is a legal arrangement used in estate planning to manage life insurance proceeds for the benefit of designated beneficiaries. In this particular type of IIT, the beneficiaries have a Crummy right of withdrawal, allowing them to withdraw a limited amount of funds from the trust within a specific timeframe. Additionally, the IIT includes a First to Die Policy with Survivorship Rider, which means that the life insurance policy pays out upon the death of the first insured person, and the survivorship rider ensures a second payout upon the death of the second insured person. This specific combination of features provides several advantages for estate planning purposes. Firstly, by placing the life insurance policy within an IIT, the proceeds are kept outside the insured's taxable estate, potentially minimizing estate taxes. Secondly, the Crummy right allows the beneficiaries to withdraw a limited amount from the trust, ensuring that the IIT qualifies for gift tax exclusions. This feature provides flexibility in managing the trust and can be particularly useful for beneficiaries who may need immediate access to funds. The First to Die Policy with Survivorship Rider is designed to ensure that the IIT receives multiple payouts. Initially, upon the death of the first insured person, the IIT receives a payout, providing liquidity for estate taxes and/or other expenses. The trust assets can then continue to grow, generating potential returns for the beneficiaries. Upon the death of the second insured person, another payout is received by the IIT, which is distributed to the beneficiaries according to the predetermined terms outlined in the trust agreement. It's important to note that there may be variations of this type of trust structure, depending on individual circumstances and estate planning goals. Some possible variations could include different payout options, alternative beneficiaries, or specific provisions tailored to meet unique needs. It is recommended to consult with an experienced estate planning attorney or financial professional when considering setting up a Massachusetts Irrevocable Funded Life Insurance Trust with Beneficiaries Having Crummy Right of Withdrawal and a First to Die Policy with Survivorship Rider, in order to create provisions that align with specific objectives and comply with legal requirements.

A Massachusetts Irrevocable Funded Life Insurance Trust (IIT) is a legal arrangement used in estate planning to manage life insurance proceeds for the benefit of designated beneficiaries. In this particular type of IIT, the beneficiaries have a Crummy right of withdrawal, allowing them to withdraw a limited amount of funds from the trust within a specific timeframe. Additionally, the IIT includes a First to Die Policy with Survivorship Rider, which means that the life insurance policy pays out upon the death of the first insured person, and the survivorship rider ensures a second payout upon the death of the second insured person. This specific combination of features provides several advantages for estate planning purposes. Firstly, by placing the life insurance policy within an IIT, the proceeds are kept outside the insured's taxable estate, potentially minimizing estate taxes. Secondly, the Crummy right allows the beneficiaries to withdraw a limited amount from the trust, ensuring that the IIT qualifies for gift tax exclusions. This feature provides flexibility in managing the trust and can be particularly useful for beneficiaries who may need immediate access to funds. The First to Die Policy with Survivorship Rider is designed to ensure that the IIT receives multiple payouts. Initially, upon the death of the first insured person, the IIT receives a payout, providing liquidity for estate taxes and/or other expenses. The trust assets can then continue to grow, generating potential returns for the beneficiaries. Upon the death of the second insured person, another payout is received by the IIT, which is distributed to the beneficiaries according to the predetermined terms outlined in the trust agreement. It's important to note that there may be variations of this type of trust structure, depending on individual circumstances and estate planning goals. Some possible variations could include different payout options, alternative beneficiaries, or specific provisions tailored to meet unique needs. It is recommended to consult with an experienced estate planning attorney or financial professional when considering setting up a Massachusetts Irrevocable Funded Life Insurance Trust with Beneficiaries Having Crummy Right of Withdrawal and a First to Die Policy with Survivorship Rider, in order to create provisions that align with specific objectives and comply with legal requirements.

Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.