clifford trust (Meaning)
clifford trust (n)
a trust established to shift the income to someone who is taxed at a lower rate than the grantor for a period of 10 years or more
Synonyms & Antonyms of clifford trust
No Synonyms and anytonyms found
clifford trust Sentence Examples
- A Clifford Trust is a type of trust established for the benefit of family members, named after a famous court case, Commissioner v. Clifford.
- In a Clifford Trust, the grantor retains some control over the assets transferred to the trust for the benefit of the beneficiaries.
- The Clifford Trust allows the grantor to transfer assets to beneficiaries while still maintaining certain powers over those assets during their lifetime.
- One of the primary advantages of a Clifford Trust is the ability to shift income tax liability to the beneficiaries, potentially resulting in tax savings.
- A Clifford Trust is often used as an estate planning tool to minimize estate taxes and ensure the smooth transfer of assets to heirs.
- Trustees of a Clifford Trust have a fiduciary duty to manage the trust assets in the best interests of the beneficiaries.
- The terms of a Clifford Trust are typically outlined in a legal document, specifying the rights and responsibilities of both the grantor and the beneficiaries.
- Setting up a Clifford Trust requires careful consideration of tax implications and the specific needs of the beneficiaries.
- While a Clifford Trust offers significant tax advantages, it also comes with certain restrictions and complexities that must be carefully navigated.
- Consulting with a knowledgeable attorney or financial advisor is essential when establishing a Clifford Trust to ensure compliance with relevant laws and regulations.
FAQs About the word clifford trust
a trust established to shift the income to someone who is taxed at a lower rate than the grantor for a period of 10 years or more
No synonyms found.
No antonyms found.
A Clifford Trust is a type of trust established for the benefit of family members, named after a famous court case, Commissioner v. Clifford.
In a Clifford Trust, the grantor retains some control over the assets transferred to the trust for the benefit of the beneficiaries.
The Clifford Trust allows the grantor to transfer assets to beneficiaries while still maintaining certain powers over those assets during their lifetime.
One of the primary advantages of a Clifford Trust is the ability to shift income tax liability to the beneficiaries, potentially resulting in tax savings.
