A BDIT is an irrevocable trust that is grantor, for trust taxation purposes, to the beneficiary and not the settlor
can validly establish a trust where he declares himself trustee to the benefit of one or more beneficiaries, as he himself may be one of the beneficiaries.
beneficiaries will be considered a grantor trust--whether or not the settlor
retained any of the aforementioned enumerated powers.
The enactment of DAPT laws in South Dakota and various other states has caused debate as to whether transfers to such trusts can be structured as completed gifts for federal gift tax purposes and whether the assets transferred to such trusts by a settlor
can effectively be removed from a settlor
's gross estate for federal estate tax purposes.
In Nevada, the sole limitation for the settlor
is that he is not permitted to make distributions to him or herself.
functions involve creating, terminating and amending a plan; decisions about plan design, such as whether or not to have automatic enrollment; and eligibility for plan participation and benefit structure, such as determining the amount of any matching or other employer contributions, etc.
This Article exposes the conflicting ways that courts and legislatures have been grappling with these clauses that pit settlor
intent not against a general distaste for forfeiture, but instead against fiduciary accountability.
Specifically, the IRS was asked to rule that the modification would not cause the settlor
to make an additional gift, would not result in the trust's assets being included in the settlor
's estate, and would not cause any current or future beneficiary to make a gift to any other beneficiary.
The convenor of the Management Committee will be nominated by the Settlor
However, within the arrangements of a standard Guernsey trust there are now special provisions which allow for the Settlor
to have some oversight of the wealth or assets.
Secondly, within the arrangements of a standard Guernsey trust there are special provisions which allow for the Settlor
to take some control of the wealth or assets; the use of structures involving a PTC or purpose trust gives the Settlor
greater control - they may sit on the board of the PTC and also be in command of the purpose trust which is the ultimate authority over the PTC board.
How can the settlor
be liable to tax on the property if he no longer owns it?