Federal tax aspects of a revocable inter vivos trust agreement should be carefully studied in considering whether to create such a trust and in preparing the trust instrument. There are no tax savings in the use of a trust revocable by the trustor or a non-adverse party. The trust corpus will be includable in the trustor's gross estate for estate tax purposes. The income of the trust is taxable to the trustor.
A District of Columbia Revocable Trust Agreement with Husband and Wife as Trustees and Income to is a legal document that outlines the terms and conditions under which a trust will be established and managed by a married couple in the District of Columbia. This agreement allows the couple, known as the Trustees, to create a trust and transfer assets to it while providing instructions for the distribution of income generated by the trust. The District of Columbia provides various types of Revocable Trust Agreements that cater to different needs and objectives of the trustees. Some common types include: 1. Revocable Living Trust: Also known as a family trust, this type of trust provides flexibility as it allows the trustees to make changes or revoke the trust during their lifetime. It serves as a tool for managing assets and property and is often used for estate planning purposes. 2. Joint Revocable Trust: This type of trust is established jointly by the married couple, allowing them to combine their assets and manage them collectively. It offers certain advantages, such as efficient management and streamlined asset distribution after the death of one or both partners. 3. Pour-Over Trust: This trust is typically used in conjunction with a will and acts as a safety net to ensure that any assets not included in the trust at the time of the trustees' death are "poured over" into the trust for proper management and distribution according to the trust's terms. 4. Testamentary Trust: Unlike other types of revocable trusts, a testamentary trust is created upon the death of the trustees, as specified in their will. It allows the couple to outline specific instructions for the management and distribution of their assets for the benefit of their beneficiaries. This type of trust is useful when there are minor children or individuals with special needs involved. The District of Columbia Revocable Trust Agreement with Husband and Wife as Trustees and Income to is a comprehensive legal document that ensures the smooth management and distribution of assets during the trustees' lifetime and after their passing. By creating this agreement, the trustees have control over their assets while maintaining the flexibility to make changes when necessary. It provides a reliable structure for protecting and distributing assets and income, addressing the unique needs of the couple and their beneficiaries.
