What Qualifies as a Complex Trust?
Estate Planning Lawyer in Fort Myers
All trusts must be classified as either simple or complex trusts for the
purpose of paying federal income taxes. According to the IRS, a complex
trust is a trust that does not classify as a simple trust. This means
that is contains provisions in regards to charitable gifts, an income
stream, or discusses other types of wealth distribution. A trust may start
out as simple, but if the trustee does not handle a trust's income
in a proper manner, a trust can become complex. During a tax year, a complex
trust must retain some current income within the trust, provide certain
amounts of money for charitable gifts to be paid that are permanently
set aside from the other assets within the trust, or distribute the amount
allocated to the principal of the trust.
Simply stated, a complex trust does not require its assets or funds to
be paid out immediately. It can gain income for as long as the trust creator,
or grantor, finds necessary. Although simple trusts often receive a higher
amount of tax deduction at the end of the year, making fewer taxes owed
overall, trust types can change from year to year. If a complex trust
follows certain rules, it may become a simple trust. If you have any questions
regarding complex planning, please contact a Ft. Myers probate attorney
from our firm.
A Complex Will
Complex wills are only needed under certain circumstances. An estate planning
attorney may suggest that you create a complex will if your assets total
over a certain amount that would qualify them for estate taxes. If you
have a child with special needs, and wish to establish a special needs
trust, you may also wish to create a complex will. For those who own their
own business or have a joint will with a spouse may also decide that a
complex will may be appropriate. If a previous spouse exists, if you expect
to accumulate more assets, or if you wish to establish a trust that gives
your children a certain amount of money at a specific age, a simple will
may not be sufficient.
Are you a resident of Lee County with complex will questions or concerns?
Our attorneys at The Dorcey Law Firm, PLC, understand how confusing creating
wills and trusts can be. You may only wish to establish certain types of trusts, as well
as create a simple or complex will. We may advise you as to which types
of trusts and wills are appropriate for you and your family, so you can
rest assured knowing that your loved ones will be taken care of after
you pass. Please contact our office to schedule an in-office meeting,
or fill out a
free case evaluation.