The Family Income Trust is an irrevocable trust designed to provide maximum flexibility for trustee and family members, while offering the greatest allowable accessibility to the trust corpus and deferring estate taxation for over 100 years.
That is quite a statement. The Family Income Trust is not just another irrevocable trust. It is intended to do far more than just hold life insurance policies, which is the case with most irrevocable trusts. In fact, it is so versatile that it can be used even in strategies that do not necessitate the purchase of life insurance. In short, if your goal is to keep your wealth in your family – not just for your children, but for grandchildren and great grandchildren as well – the Family Income Trust is the one strategy which you must consider.
As with most irrevocable trusts, the funds held in the Family Income Trust may be used after your death to buy assets from your taxable estate, or the Family Income Trust funds can be loaned to your estate to provide liquidity to pay the often oppressive estate taxes which are due within nine (9) months of death.
While flexibility and creditor protection are necessary, they are of little use to your family if they are denied access to the property in the Family Income Trust. The Family Income Trust is designed to provide your children and grandchildren with nearly complete access to the Trust assets.
While the flexibility and accessibility available through the Family Income Trust are important provisions, perhaps the single most important aspect of the Family Income Trust is the incredible estate tax savings which it can afford your family.