Opportunity Trusts

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Morris Law Group has developed a unique trust called an Opportunity Trust™. The trust provides the following benefits:

  • The client may act as one of the primary trustees of the trust.
  • The client may control the trust’s investments and distributions to others.
  • Assets are protected from creditors of the client and the creditors of any beneficiary.
  • The entire trust is excluded from federal estate taxation for a minimum of 360 years in Florida.

The Opportunity Trust is designed so that the trustee can distribute any amount of income or principal to a pool of beneficiaries which may include the client, the client’s spouse and all of the client’s descendants.The client may also add any beneficiaries in the future.

During the term of the trust, the trustees may invest in any investments they desire. The trust may be a separate taxpaying entity and beneficiaries who receive the income have it taxed at their income tax rates or it may be taxed to the client on the client’s income tax return.

One possible scenario of an Opportunity Trust in use is as follows: A client has the opportunity to acquire an investment that will require a contribution of $250,000. The Opportunity Trust obtains a $250,000 loan to purchase the investment. The Opportunity Trust pays market interest rate on the loan. When the investment later sells for $1,000,000, the Opportunity Trust pays $250,000 to the lender to pay off the loan and retains $750,000. The trustee of the Opportunity Trust now controls the remaining $750,000, which is protected from creditors and is outside of the federal estate tax system for at least 360 years.

While this technique seems complex, contact our office as our attorneys are very adept in this area and look forward to working together with you to achieve a great outcome.


** Disclaimer Required by IRS Circular 230** Unless otherwise expressly approved in advance by the undersigned, any discussion of federal tax matters herein is not intended and cannot be used 1) to avoid penalties under the Federal tax laws, or 2) to promote, market or recommend to another party any transaction or tax-related matter addressed.

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