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An Irrevocable Vehicle
By LaVerne L. Dotson; JD, CPA
A secular trust is typically an irrevocable trust designed so that creditors of a hospital employer, including bankruptcy creditors, cannot attach its funds.
Taxes
Consequently, the employer’s contributions to an irrevocable trust, often means the trust’s earnings are taxable income to the employee.
Benefits
Benefits are normally payable to the employee upon the occurrence of specific events, such as the passage of a certain number of years, retirement, disability, or death.
Assessment
Because they protect against a loss of benefits if the employer becomes insolvent, secular trusts may be preferred to a Rabbi trust by healthcare executives.
Conclusion
Your thoughts and opinions on the above are appreciated?
Related Information Sources:
Practice Management: http://www.springerpub.com/prod.aspx?prod_id=23759
Financial Planning: http://www.jbpub.com/catalog/0763745790
Risk Management: http://www.jbpub.com/catalog/9780763733421
Healthcare Organizations: www.HealthcareFinancials.com
Administrative Terms: www.HealthDictionarySeries.com
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