Alaska Trust Act

Posted in Finance, Accounting and Economics Terms, Total Reads: 259
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Definition: Alaska Trust Act

Alaska Trust Act, 1997, is a legislation which allows individuals or companies to place their assets in an irrevocable trust and the assets would be protected from the creditors provided the trust had a grantor who can act as a discretionary beneficiary. This act also excludes those assets in the trust from the grantor’s actual assets thereby resulting in tax savings.


A grantor is a person who creates the trust by putting his assets into the trust.

Discretionary beneficiary is a person or a company who is named in the trust and receives the benefits from the trust.


Conditions to be met by an asset protection trust under Alaska Trust Act are:

• The trustee must be a financial institution with its business in Alaska or an individual who is a resident of Alaska

• A certain amount of the trust’s assets should be deposited in a recognized financial institution

• A part or all of administration costs of the trust must be incurred in Alaska

 

This act provides tax saving and estate asset planning benefits that are not available in other states of America.

 

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