The Tax Cuts and Jobs Act passed in late 2017 made significant changes to many areas of federal tax law and highlighted the importance of income tax planning. Personal trusts, where individuals establish trusts for their own benefit or the benefit of other individuals, have been used most commonly as estate and gift tax planning vehicles.
The person to whom property or power is entrusted for the benefit of another is a fiduciary. A few examples of fiduciary roles include trustee of a trust, executor under a will, or guardian for an incapacitated person. The law imposed upon fiduciaries requires them to act in the best interest of the beneficiaries they serve. This duty imposes a high standard of care upon fiduciaries.
The trust industry: A brave new worldOver the past half-century, the role of a trustee has evolved rapidly along with the trust industry itself. We have seen a transition in the investment standards guiding trustees from a “prudent man” using legal lists to a “prudent investor” employing modern portfolio theory.
Establishing a personal trust in the state of Delaware has unique advantages to help you manage and control your business. Learn why the First State is a preeminent jurisdiction for business owners and trusts, offering asset protection, confidentiality, and directed trusts.
One of the biggest hurdles for business owners considering estate planning using personal trusts is the fear of giving up control over their most significant asset. After many years of successfully leading their company, they are understandably reluctant to let anyone else make decisions about how it is managed as an asset. When holding business interests in a trust, it’s important to understand the different structural models for fiduciary decision making.