Federal tax aspects of a revocable inter vivos trust agreement should be carefully studied in considering whether to create such a trust and in preparing the trust instrument. There are no tax savings in the use of a trust revocable by the trustor or a non-adverse party. The trust corpus will be includable in the trustor's gross estate for estate tax purposes. The income of the trust is taxable to the trustor.
A Virgin Islands Revocable Trust Agreement with Husband and Wife as Trustees and Income to refers to a legal document that establishes a trust in the Virgin Islands, where a husband and wife act as trustees or creators of the trust, and the income generated from the trust assets is allocated to beneficiaries. This type of trust agreement provides flexibility and control for the trustees, allowing them to retain ownership and control of the assets during their lifetime while designating beneficiaries to receive the income generated from those assets. The trust agreement can be amended or revoked by the trustees at any time, providing them with the freedom to modify the terms and conditions as circumstances change. In the Virgin Islands, there can be different types of Revocable Trust Agreements with Husband and Wife as Trustees and Income to, including: 1. Irrevocable Income-Only Trust: This type of trust agreement ensures that only the income generated by the trust assets is distributed to the beneficiaries. The principal assets remain protected from creditors and can later be passed down to future generations. 2. Charitable Remainder Trust: In this trust agreement, the husband and wife, as trustees, designate charitable organizations as beneficiaries to receive income from the trust during their lifetime. Once the trustees pass away, the remaining assets are distributed to the chosen charitable organizations. 3. Special Needs Trust: This type of trust agreement is designed to provide financial support to a beneficiary with special needs. The trustees allocate income from the trust to enhance the beneficiary's quality of life without affecting their eligibility for governmental assistance programs. 4. Granter Retained Income Trust (GRIT): In a GRIT trust agreement, the husband and wife transfer income-generating assets to the trust while retaining the right to receive income for a specified period. After this period, the remaining assets are transferred to the named beneficiaries. 5. Qualified Personnel Residence Trust (PRT): This trust agreement allows the trustees to transfer their primary residence or vacation home into the trust, while still residing in the property for a set period. At the end of the term, the property transfers to the named beneficiaries, often with significant tax advantages. A Virgin Islands Revocable Trust Agreement with Husband and Wife as Trustees and Income to offers numerous benefits, including asset protection, avoidance of probate, privacy, and controlled distribution of income. It is crucial to consult with a qualified attorney to fully understand the legal implications and determine which type of trust agreement aligns with specific estate planning goals and objectives.
