The IPUG Trust: Your New Best Friend In Asset Protection

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The IPUG Trust: Your New Best Friend In Asset Protection

In today’s turbulent world, Americans have been riding an economic rollercoaster. Many are beset by fear and even more have lost all confidence in the economy. The burning question on their minds is: what will the future bring? Some say that it is anyone’s guess. But, what if it could be more than a guess? What if you had a way to replace uncertainty with certainty? What if you had a means to find solutions for your family, regardless of your wealth or status, to create a win-win scenario? What if you could utilize a brand new tool in planning for your and your family’s future?

There is certainty in our uncertain times. The groundbreaking tool that will rocket estate planning to the next level is the IPUG – a whole new approach to estate planning.

So, just what is an IPUG? The Irrevocable Pure Grantor Trust, or IPUG, is a Self-Settled Asset Protection Trust for everyday folk, which is Medi-Cal compliant. It protects client assets from creditors, predators and nursing homes, while permitting the grantor to be trustee and have customized access. The IPUG was created by utilizing universal, fundamental trust and common law principles dating back to the English Statute of Uses of 1529 and is compliant with California and federal asset protection laws. In essence, the IPUG is, for income and estate tax purposes, an Irrevocable Grantor trust. (It is not an intentionally defective grantor trust, for those readers who know their trusts.) It not only provides advantageous tax benefits, including a full step-up in basis, but it also provides asset protection, while retaining Grantor control. With the increase in the estate tax exemption to $5.45 million ($5.5 million anticipated in 2017), IPUG will be applicable to 99.7% of Americans.

What makes IPUG unique? These trusts are easily understood. Whether you are a schoolteacher, an investment-savvy business owner or a busy professional, you can look to IPUG to protect your personal planning goals and objectives. People who want to protect their assets without giving up control or use of those assets are primary prospects, but IPUG is also exceptionally useful for individuals and couples who want to protect their personal assets, now and from lawsuits, predators, and nursing homes. The key element clients appreciate about IPUG is that they remain in control. They can have full access to income and indirect access to principal depending on individual goals and objectives. Since everything is reported on a 1040, the flexibility of these trusts ensures no separate income or gift tax returns are required.

The IPUG is immune to market conditions. In times of fear and anxiety, such as we are currently experiencing, many people’s level of fear of losing what they have is heightened and they are more likely to engage in this form of asset protection planning because it enables them to remain in control and have customized access. A decrease in the value of their portfolios actually has a positive result when planning for Medi-Cal eligibility, because it enables it to be accomplished in less time and creates a ‘Medi-Cal freeze,’ ensuring no additional penalties will be incurred when the full value of their stocks returns. People need nursing homes regardless of market conditions. This creates an immediate need that far outweighs those of a wavering stock market. People see IPUG as a solution in these uncertain times, rather than a condition of these uncertain times.

How does IPUG offer security for future generations? In addition to asset protection during a client’s lifetime, IPUG allows clients to pass assets on to their children in a manner that protects their children from lawsuits, divorce, nursing home expenses, and, if necessary their children’s indiscretions. The IPUG also allows clients to preserve their personal values by creating family standards that have a direct bearing on access to assets bequeathed to their heirs.



October 7, 2016at 12:37 pm

Are these for CA residents only? Or are they on the federal level?

    Scott Maxwell

    October 24, 2016at 10:21 am

    Thank you for this great question, Bill. A trust must comply with both federal law and the laws of the state in which it is created. The IPUG trust is fully compliant with federal law. While I cannot speak to the trust laws of all 50 states, I do know that the IPUG complies with all three states’ laws in which I am admitted to practice (California, New York, and Connecticut). Further, I have a network of colleagues who use this particular trust across the country. I do not know of a state in which the IPUG is not compliant.

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