Chapter 29 - CHAPTER 29 IRREVOCABLE TRUSTS

• Jurisdiction: Colorado

Chapter 29 IRREVOCABLE TRUSTS

Edward D. Brown, Esq.
Eric R. Kaplan, Esq.

SYNOPSIS

§ 29.1 INTRODUCTION

§ 29.2 GENERAL OVERVIEW

§ 29.2.1—Removing Assets from the Taxable Estate
§ 29.2.2—Intentionally Defective
§ 29.2.3—Gift Tax
§ 29.2.4—Lapsing Crummey Powers
§ 29.2.5—Dynasty Provisions
§ 29.2.6—Spendthrift Provisions

§ 29.3 CHARITABLE TRUSTS

§ 29.3.1—The Annuity Trust Versus the Unitrust
§ 29.3.2—Features of the Charitable Remainder Trust
§ 29.3.3—The Charitable Lead Trust

§ 29.4 INTENTIONALLY DEFECTIVE IRREVOCABLE TRUSTS (IDITs)

§ 29.4.1—IDITs in General
§ 29.4.2—Income Taxation of a Grantor Trust
§ 29.4.3—How an IDIT Reduces the Taxable Estate
§ 29.4.4—Potential Gift Tax Consequences of Paying the Trust's Tax
§ 29.4.5—Common Methods to Create an Intentionally Defective Grantor Trust
§ 29.4.6—Ability to Toggle Grantor Trust Tax Classification

§ 29.5 BENEFICIARY CONTROLLED TRUSTS (BCTs)

§ 29.5.1—Overview
§ 29.5.2—Characteristics of a Typical BCT
§ 29.5.3—Special Powers of Appointment

§ 29.6 SPENDTHRIFT TRUSTS

§ 29.6.1—Introduction
§ 29.6.2—Federal Bankruptcy Code with Respect to Spendthrift Trusts
§ 29.6.3—Modern Trend of Spendthrift Trusts
§ 29.6.4—Colorado

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