What is an irrevocable pure grantor trust, and why would someone want one? In this episode, David Zumpano, a nationally recognized expert on asset protection, estate planning & elder law, discusses with me this little known (although widely used) trust – what it is, why we use it, and who it is for.
In Part 1, you will learn:
- about the goal of helping a loved one to protect their autonomy
- why people end up in nursing homes (how failing to plan makes this more likely)
- why retirement isn’t necessarily what you think it is
- why we want to engage in an asset protection strategy for financial security in our later years
- what is an irrevocable pure grantor trust, and how it differs from tax trusts and revocable living trusts
- the history of trusts and what they were traditionally used for (tax trusts – the “traditional” irrevocable trust – no access, no control, no right to benefit)
- how trusts evolved over time – becoming the revocable living trust
- why the change in the laws in 2001 significantly changed the tax planning landscape, and ultimately the estate planning landscape
- how traditional irrevocable trusts aren’t relevant to 99.8% of the American population
- how the irrevocable pure grantor trust (iPug (TM)) was created as a result of these changes
- what makes it unique as a planning tool
- how the common law of the United States support this type of planning as a legitimate tool for asset protection
- Dave’s Law Review Article – where he sets out the case for the trust via common law
…in Part 2, we will discuss exactly who this is for, how it works, and more! We will also discuss the types of assets that may be placed in a trust such as this one, and the benefits of its flexibility and protection.
About Dave Zumpano:
Dave was born and raised in Central New York. He attended LeMoyne College and began his professional career with Price Waterhouse as a staff accountant. He graduated from Syracuse College of Law. He is the Founder and Senior Partner of the Estate Planning Law Center, David J. Zumpano CPA, Esq., with offices in New York and Florida. The Estate Planning Law Center serves as a “model law firm” to hundreds of law firms across the country. Dave’s practice remains focused on estate planning and elder law.
Dave has been featured in the Wall Street Journal and on National Public Radio for his expertise in Estate and Medicaid Planning. Dave has been a regular speaker and trainer on estate planning, asset protection and Medicaid Planning to many national legal, banking and financial institutions, including the National Academy of Elder Law Attorneys, National Network of Estate Planning Attorneys, American Academy of Estate Planning Attorneys, The American Association of Attorney-CPAs, Ohio State Bar Association, Elder Law Answers, WealthCounsel, LLC, Advisor’s Forum, LLC, ElderCareUSA, Ameriprise Financial, Morgan Stanley Smith Barney, Merrill Lynch, Wells Fargo, HSBC, Bank of America, Prudential, Mass Mutual, AXA Advisors and others. He has been featured on local, regional and national newspaper, TV and radio programs.
In addition to his law firm, Dave is Founder of the Medicaid Practice Network and Medicaid Practice Systems, LLC. Dave is Co-Founder of Lawyers with Purpose, LLC (LWP), an organization committed to ensuring people can die without emotional pain and lawyers can be respected and valued for the good they help create. Dave has educated thousands of attorneys all over the United States on Estate, Asset Protection, Medicaid Planning and Business Development. Dave is the creator of an Estate and Asset Protection Law Practice System for attorneys which has been implemented by almost 1,000 law firm’s nationwide. Dave also serves as a Business coach to hundreds of attorneys across the country.
Dave is a graduate of the Esperti Peterson Institute for Advanced Wealth Strategies and has published Irrevocable Pure Grantor Trusts: The Estate Planning Landscape Has Changed. (Syracuse Law Review Vol. 1 Fall 2010), Medicaid Estate Recovery: A 50 State Analysis, and What Hard Work Giveth, the Nursing Home Taketh Away: Asset Preservation Under Medicaid (the Digest, 1994-95). Dave is also a contributing author to Giving: Philanthropy for Everyone, published October 2002.
Dave’s first priority and passion is his wife, Christine, and their children, Maria, Olivia, and Angelo.