What is a disclaimer trust?

A Disclaimer Trust is a type of trust that is created in order to provide flexibility and control over the distribution of assets. With this type of trust, the beneficiary has the right to disclaim or refuse any inherited assets. When the beneficiary disclaims, the assets are passed on to the trust instead, where they are managed and distributed according to the trust agreement.

One of the benefits of a Disclaimer Trust is that it allows for tax planning and management of estate taxes. By keeping assets in a trust rather than directly distributing them to beneficiaries, it may be possible to minimize estate taxes.

Another benefit of a Disclaimer Trust is that it provides flexibility and control over the distribution of assets. By giving beneficiaries the option to disclaim assets, the trustee has more control over the ultimate distribution of assets. This can be particularly useful if there are changes in circumstances, such as a beneficiary passing away or a change in tax laws.

Overall, a Disclaimer Trust can be a useful tool for managing the distribution of assets and minimizing tax liabilities. However, it is important to consult with an estate planning attorney to determine whether this type of trust is right for your individual circumstances.