Revocable living trusts are utilized by many individuals who are looking for a way to avoid probate. The process of probate can be time-consuming, and there are expenses that go along with it including court costs. So choosing a trust can often times save your heirs time and money.
Revocable living trusts can facilitate a smooth transfer of assets. They are also appealing because you, as the grantor, can retain full control of the resources while you are alive. However, because of this ongoing control litigants could target the funds that you placed in the trust. These assets are also part of your estate in the eyes of the Internal Revenue Service.
There are however trusts available in the state of Alaska that can provide you with income, tax efficiency and asset protection.
Alaska law allows for self-settled trusts. These irrevocable trusts do in fact protect the assets from claimants and creditors. Plus, the act of funding the trust removes those assets from your estate for estate tax purposes.
There are certain stipulations that must be met, and one of them involves having a trustee who either resides in or operates a business in the state of Alaska. One way to proceed given this condition would be to engage the services of an Alaska-based trust company.
Wealth preservation is very important for those who have reached their financial goals, and self-settled Alaska trusts can provide a viable solution for people seeking asset protection and estate tax efficiency.