Tampa Grantor Retained Income Trusts Attorney
Tampa GRIT Attorneys
As you begin to plan your estate, chances are you have concerns about the estate tax. When you pass, your assets and property are recorded as your estate. Federal law levies a heavy tax on those assets and property if your estate exceeds a certain value. For your family, this means that a portion of the property they received from you could go towards a substantial tax bill. After working and saving your whole life, you surely would prefer your loved ones receive that money instead of the government. Fortunately, those same tax laws create exceptions, like when assets are placed in certain types of trusts.
What Are Irrevocable Trusts?
A trust creates a legal relationship between you, the trustee, and your designated beneficiary or beneficiaries. You, as the grantor, create the trust and place assets into it. The trustee manages the trust, and may even be able to sell or invest trust assets to increase the value of the trust. Your beneficiary will ultimately receive the value of the trust. Most trusts specify the time after which the beneficiary is going to receive the trust. That is, after a specified period of time or event has passed, the trust ownership will pass to them.
A particularly beneficial form of trust is the irrevocable trust. An irrevocable trust cannot be changed or modified after creation without the beneficiary’s consent. Once the trust is created, you no longer own it or the trust assets. This provides a tax advantage since the assets you place in trust are no longer considered part of your estate. But what if you place a significant amount of your estate into trust? Doing so could have a negative impact on your current assets. With a Grantor Retained Income Trust (GRIT), a type of irrevocable trust, you can place large amounts into trust while receiving an income from the trust for a period of time.
Benefits of a GRIT
With a GRIT, you can receive income from your trust for a term of your choosing, while still providing a future gift for your beneficiaries. This flexibility allows you to stabilize your current financial situation through the income, even though you no longer own the assets. Another major benefit associated with a GRIT is reducing the gift tax bill. One drawback of the GRIT is the legal limitation on beneficiaries. You can name descendants of your siblings (nieces/nephews), more distant relations, or friends as the beneficiaries. If you do want to provide for those individuals, your GRIT will provide a protected gift to them.
Call Trustworthy Tampa Estate Planning Lawyer
Are you concerned that your valuable estate will be heavily taxed after your death? Are you worried that your family will lose out on a substantial portion of your estate? If so, contact David Toback, Attorney at Law. With nearly two decades of legal experience, David has helped Tampa residents create innovative solutions to estate planning issues. He will guide you through your legal options, helping you select the best choice for you. No matter what your specific financial goals are, you and your loved ones can benefit from estate planning. Start planning for the future today, and contact David Toback at to schedule a consultation.