Our own Mark Gilfix was quoted in a recent San Francisco Chronicle Article about the Murdoch family trust saga, and what famillies can learn from it.
In the article, Mark Gilfix discusses the primary reason people set up irrevocable trusts: to achieve estate or gift tax benefits. He explains that irrevocable trusts are often used to remove assets from a person's estate, ensuring they are not subject to estate taxes. This approach was more common when estate tax exemptions were lower, but remains relevant for individuals with substantial wealth. For example, startup founders might use irrevocable trusts to transfer shares early when their value is low, thus utilizing their estate tax exemption efficiently. Gilfix also highlights that irrevocable trusts are commonly used in special needs trusts or asset protection trusts, offering long-term care for children with disabilities or safeguarding assets from creditors.
Click here to view the full article.