Define: Clifford Trust

A Clifford Trust is a type of irrevocable trust that allows the grantor to transfer assets to beneficiaries while still maintaining control over those assets during their lifetime.

In a Clifford Trust, the grantor transfers assets into the trust and designates beneficiaries who will receive the assets at a later date. The grantor retains control over the trust and can receive income generated by the assets during their lifetime.

One of the main benefits of a Clifford Trust is that it allows the grantor to transfer assets to beneficiaries while minimising estate taxes. It also provides the grantor with control over the assets during their lifetime.

No, a Clifford Trust is an irrevocable trust, meaning that once it is established, it cannot be revoked or modified without the consent of all beneficiaries.

Any individual or entity can be named as a beneficiary in a Clifford Trust, including family members, friends, or charitable organisations.

Yes, there may be tax implications associated with a Clifford Trust. The grantor may be subject to gift taxes when transferring assets into the trust, and the beneficiaries may be subject to income taxes when they receive distributions from the trust.

Yes, a Clifford Trust can be used to avoid probate. Since the assets in the trust are not considered part of the grantor’s estate, they do not go through the probate process upon the grantor’s death.

Yes, a Clifford Trust can be established for minors. In such cases, a trustee is appointed to manage the trust and make distributions on behalf of the minor beneficiaries until they reach a certain age or meet certain conditions.

No, a Clifford Trust may not be suitable for everyone. It is important to consult with a qualified estate planning attorney to determine if a Clifford Trust aligns with your specific financial goals and circumstances.