Page 29 - Newcom

5
NEFITS OF ALTER EGO AND JOINT-PARTNER TRUSTS
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inimize estate administra-
distribution of estate assets to take months, or even years. With an alter ego or joint-partner trust, trustees will already be the legal owners of the trust property and can proceed to distrib- ute the assets soon after the client’s death.
IF A TRUST IS CHALLENGED AFTER
THE PERSON WHO SET IT UP DIES, HULL SAYS THERE SHOULDN’T BE ANY MAJOR TAX CONSEQUENCES.
5 Effective management during incapacity: Alter
ego and joint-partner trusts may eliminate the need
for powers of attorney. If a client loses mental capacity, the trustee (or contingent trustee) will already have control of all decisions and can simply continue with her duties. This allows clients
to maintain continuity in the management of trust assets.
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M
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yF
ANK Di PIETRO, director of tax and estate planning, Mackenzie Investments
joint-partner trusts allow client affairs to be kept pri- vate. This can be particularly valuable for wealthy people who wish to keep the value of assets, as well as the recipients, con dential.
3 Protection against legal claims: Bene ciaries (or those who feel they should be bene ciaries) may challenge a will if they feel they have not been treated fairly. With an alter ego or joint-partner trust, there is no will to contest and there- fore, little opportunity to challenge the distribution of assets. Therefore, alter ego and joint-partner trusts may allow clients to avoid de- pendant’s relief legislation by disinheriting close relatives who may otherwise obtain relief by challenging a will.
4 Speedy distribution of assets: The probate process can be lengthy, causing the
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ients may want to consider
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on tax/probate fees: Alter i
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GETTY IMAGES
Up to now, the use of alter go and joint-partner trusts to
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usts generally far exceed the
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ter ego and joint-partner
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trusts, which have positives that go beyond eliminating the expense, time delay, and frus- tration of probate procedures.
2 Privacy: Unlike a will, which becomes a public document if probated, alter ego and
Investment managers who are free to be themselves.
Bridgehouse Asset Managers partners with established independent managers who invest differently than the crowd—offering unique investment solutions with the potential to deliver strong long-term performance.
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