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Creative Use of Independent Co-Trustees in Irrevocable TrustsCreative Use of Independent Co-Trustees in Irrevocable Trusts

Suggested provisions to avoid the IRC Section 2041 inclusion issue.

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John M. Janiga, Louis S. Harrisonand 1 more

May 23, 2022

21 Min Read
Janiga GettyImages-856750936.jpg

In developing an estate plan, practitioners regularly use irrevocable trusts (versus the typical revocable living trust) to assist clients in achieving tax and non-tax estate-planning goals.Irrevocable trusts are used during life most often for estate tax planning to remove the fair market value (FMV) of the trust property from the grantor’s gross estate (GE) for federal estate tax (FET) purposes.

Irrevocable trusts are also created as subtrusts (for estate and generation-skipping transfer tax purposes or for other reasons) under revocable trusts when the grantor of a revocable trust passes away. Regardless of the tax planning sought to be achieved by irrevocable trusts, they can help a client achieve numerous other goals. Two signific...

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About the Authors

Louis S. Harrison

Partner, Harrison LLP

A frequent speaker and writer on tax and estate planning, Louis S. Harrison has spoken before numerous groups nationwide. He has authored more than 100 published articles on a broad range of tax and estate-planning subjects in legal, accounting, tax and estate journals and periodicals, and is co-author of the books, "Sorting Out Life's Complexities: What You Really Need to Know About Taxes, Wills, Trusts, Powers of Attorneys and Health Care Decisions" and "Illinois Estate Planning Forms and Commentary."

Louis S. Harrison is the Illinois State Chair of the American College of Trusts and Estate Counsel and has been an adjunct professor at Northwestern University School of Law, DePaul University College of Law and Chicago-Kent College of Law.

As a member of the Chicago Bar Association, Lou has chaired the Estate and Gift Tax Committee and served on the Trust Law Committee and Probate Practice Committee.

Before joining Harrison & Held, LLP, Lou was the partner in charge of the Lord, Bissell & Brook Wealth Preservation Group.

Beth L. Fox

Attorney, Harrison & Held, LLP

Beth L. Fox joined Harrison & Held, LLP in 2016 after receiving her Juris Doctorate from Chicago-Kent College of Law. She focuses her practice on estate planning, estate and trust administration and tax planning.

While in law school on a full academic scholarship, Beth interned at Harrison and Held, LLP, and served as a Notes and Comments Editor of the Chicago-Kent Law Review. As a student, Beth earned the CALI award for highest class mark in seven classes including Estate Planning, Trusts and Estates and Income Tax, and graduated in the top 1.6% of her class.