10 reasons to consider decanting an irrevocable trust
5. Adjusting powers of appointment.
Old trusts don’t have powers of appointment, which would allow an individual to adjust the succeeding interests of the beneficiaries and how they get the assets, according to Mr. Oshins. Decanting can grant those powers to a beneficiary. With today’s estate tax exemption so high and income tax reduction becoming even more important, a power of appointment granted to the beneficiary over certain trust assets can allow those assets to receive a new income tax basis once that individual dies, he observed.
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