CLU - CFP Topics 53 - 73 Estate Planning: Introduction Trusts Flashcards
Trusts:
- Separates ___ and ___ titles
- Separates ___ interest from ___ interest
- Not a procedural document
- legal, beneficial
- present, future
All trusts must have a ___.
duration
A ___ trust is for a specific definite period of time.
term
A ___ ___ trust is for an indefinite period of time based on some lifetime or subsequent event.
life estate
___ is a third person who obtains the assets after a present interest.
Remainderman
Reversion interest means that the ___ gets the future interest and that has tax consequences.
grantor
A trust requires: ___, ___, & ___.
grantor, trustee, beneficiary
___ trust is when there are no assets in the trust.
unfunded
___ trust have assets in the trust.
funded
Types of trusts
- Revocable versus irrevocable
- Inter vivos versus testamentary
- Funded versus unfunded
- Grantor
- Simple versus complex
___ trust is the most common and can be changed or terminated at any time as it is under the control of the grantor.
Revocable
___ trust means grantor has given up control and the trust becomes a separate entity. It has its own tax return.
Irrevocable
___ trust control assets during life time and serves as a will substitute.
Inter vivos
___ trusts are usually a creation of the will and are only used after death.
testamentary
Two types of grantor trust
revocable & irrevocable
