Sale to a Defective Grantor Trust

March 6, 2012
Hosted by Rich Bloomfield and Rick Durfee

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Episode Description

The Sale to a “Grantor Defective Trust” has become a classic tactic in better built estate plans. It can be highly effective in rescuing assets from taxation at death. But the defective trust is shrouded in mystery. Why would anyone want a “defective” trust? What kind of “defects” cause it to be a “grantor trust”? What is a “Grantor Trust”? How is it taxed? How will it effect my tax liability? Will I pay more or less in taxes? Why would I want to sell something to it? What would I sell? How can a defective trust buy anything if it has no money? How does this fit into the lifetime gift exclusion which is set to expire at the end of 2012? Is this a good time or a bad time to make this move? Who benefits by a sale to a defective trust? What is the down side? What are the consequences for the family and the family assets and business interests? Tune in to What About Wealth? to hear Rick and Rich give a simple explanation for a complex and powerful tax saving strategy.

What About Wealth?

What About Wealth?

Archives Available on VoiceAmerica Business Channel

Rich and Rick will discuss the many ways wealth touches our lives – how to make it, grow it , preserve it, donate it, invest it, protect it from unnecessary taxation or pass it on to the next generation without creating problems, through effective planning and value based leadership. This holistic, value based approach to applying tax, financial, asset protection and investment concepts to long term wealth provides a framework for listeners to deal effectively with wealth issues. The ability to explain tax, legal and financial issues surrounding wealth in an everyday, conversational way using pertinent stories and experiences set Rich and Rick apart and will provide direction you can understand and apply. Topics will include wealth and asset preservation/protection structures and techniques, business and estate structuring and planning, income tax planning, retirement and retirement income planning.

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Rich Bloomfield and Rick Durfee

Rich Bloomfield and Rick Durfee

Richard H. Bloomfield, CPA founded Bloomfield CFO, PLLC, a public accounting firm, in 2000 to provide strategic financial direction and tax advice and planning to owners of closely held businesses, including dentists, doctors and entrepreneurs in nearly every business sector. Rich has a Masters Degree in Taxation from Brigham Young University, has been a CPA since 1981 and is credentialed to practice in both Arizona and Utah. He is a member of the State Society of Certified Public Accountants in both states.

Rich has worked as a CEO, CFO, and COO and has broad based business experience, giving him a real world understanding of business and tax issues that business owners face every day. Rich’s experience and skills include Income tax structuring and planning for businesses and individuals; complex estate structuring and planning for business owners and high net worth individuals; advanced asset protection; insurance planning and strategies; exit strategies for closely-held businesses and owners; business combinations and mergers; and retirement planning including income strategies in retirement. Rich has a unique ability to listen to your business and tax concerns and plot a course of action to address them effectively.

Richard E. Durfee Jr has been practicing law since 1988. His practice is limited to representing high net worth and high income individuals, families, and their businesses. He focuses on Preventive Law and holistic planning — which means teaching value based leadership in Dynasty estate planning, wealth preservation, asset protection, strategic planning for businesses, charitable planning, and turning the gift of wealth into a blessing rather than a curse. Rick has clients from all over the United States, and his firm is admitted to practice before the IRS and Federal Courts, and is admitted to the bar in Arizona, California and Florida. His personal motto and trademark is "Live Well, Leave a Legacy."

Rick is a popular nationally known speaker, and has been featured at the Money Show, Freedom Fest, and other conventions. He regularly provides continuing education on behalf of professional associations in the areas of his practice. Rick is President and Director of Legacy Global Foundation, Inc. and has raised millions of dollars for charity. He serves in many positions as a volunteer leader for the Boy Scouts of America.

Rick has authored many articles and publications including, “The Estate Planning Guide to Better Sex,” “Leave Your Estate To Your Children Without Ruining Them,” “Why All Trusts Are Not Created Equal,” and many others. Prior to his legal career he published in Japan. He has three degrees, all from Arizona State University.

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