Estate Planning

Question 1

Testamentary Trust

Answer 1

created after person dies, no deemed disposition when capital transferred in upon death

Question 2

Inter Vivos Trust

Answer 2

created during settlor’s lifetime, settlor retains control until death
triggers deemed disposition at time of transfer

Question 3

Alter Ego Trust

Answer 3

created during settlor’s lifetime, must be age 65, no deemed disposition, only settlor entitled to income and capital

Question 4

Joint Partner Trust

Answer 4

created during settlor’s lifetime, must be age 65, no deemed disposition, only settlor and spouse entitled to income and capital

Question 5

Spousal Trust

Answer 5

created during settlor’s lifetime, no deemed disposition, only spouse entitled to income and capital

Question 6

Family Trust

Answer 6

living trust, revocable so settlor can retain control

Question 7

How much of principal residence is subject to probate

Answer 7

full amount, can be gifted or transfer into joint ownership to avoid taxes and probate