Private Annuity Trust Discover the many benefits of a private annuity trust. A private annuity trust is an effective asset management tool that allows individuals to better manage and control tax liabilities normally associated with the sell of high ticket items such as land, a home, stock, collectibles, or other valuable assets. Many individuals now utilize a private annuity trust to defer tax liabilities, create a lifetime retirement income, eliminate estate taxes, avoid probate, and protect family assets. The private annuity trust works similar to the immediate annuity, a retirement product used to create lifetime income for seniors from a lump sum. You transfer the asset you would like to sell irrevocably into the private annuity trust, which in turn guarantees you fixed income payments for the rest of your life. The amount of the payments is calculated by comparing your age against the actuarial tables published by the IRS. After you transfer ownership of a property into the private annuity trust, the trust can then sell the property, and all proceeds from the sale are invested conservatively through the trust to fund your lifetime income payments. A private annuity trust will often name your own children as beneficiaries, depending on your estate plan decisions.
The private annuity trust is a very simple and strategic tax planning tool that can save hundreds of thousands of dollars in tax liabilities over time, while maximizing the value of your investment due to tax-deference and compounding of principal and gains. Some of the more popular trust benefits include:
- defer capital gains taxes normally due at time of sale
- pay no depreciation recapture taxes upon time of sale
- eliminate estate taxes due upon taxpayers death
- create a lifetime income stream for joint lives
- eliminate property management requirements
- maximize Medicaid planning benefits for asset protection
- provide asset protection against legal disputes
- avoid the expenses and delays of probate
For more information on how a private annuity trust can be used to protect your financial security and investment growth, contact us today to arrange a friendly and helpful telephone interview. |
