Posted by Jimmy on February 21, 2008 at 13:50:20:
not sure what a PPT is. I’ve drafted hundreds of trusts, of many varieties. and I’ve certainly funded them with real property and many kinds of PP, but never heard of a PPT. if you could offer me some of its attributes, I’ll likely recognize it by another name.
I know a lot about ILIT’s. (Irrevocable Life Insurance Trust). often used for wealthier clients who are trying to create tax-free liquidity for their estates. an ILIT, if properly established, funded and maintained, will do just that. here’s the deal with life insurance. if I die and I own a policy on my life, the proceeds are taxable in my estate (assuming I am “over the line” in terms of net worth). but if someone else owns a policy in my life, the death benefit is not included inmy taxable estate.
its easy enough to do. have your kids own the policy. but many clients are not satisfied with this arrangement, because their kids are —morons, dopeheads, gamblers, in bad marriages, financially irresponible—otherwise unqualified to manage a large pile of “instant cash.”
the idea is to create a “someone else” that has very specific characteristics. that “someone else” can be a trust. and trusts are wonderful instruments when we want to separate control of assets from the beneficial enjoyment of those same assets.
I can go on for many paragraphs. I’ll spare you the lecture.
tell me what you want to know, and I’ll share.
as far as publications go, just google “life insurance trust”. every LIC that operates in the US will have some basic stuff on ILIT’s.
good luck