Living trusts are a popular estate planning tool that can have a significant impact on taxes depending on factors like the type of trust, the assets involved, and the tax laws of the state or jurisdiction in which you reside. When properly structured, a living trust can help minimize estate taxes and provide tax benefits for both the trust creator and beneficiaries. Living trusts offer the flexibility of altering or revoking the trust during the grantor’s lifetime, whereas irrevocable living trusts cannot be changed or revoked once established.
It's important to note that the tax implications of a living trust can vary depending on individual circumstances and applicable tax laws. Therefore, it's crucial to consult with a qualified estate planning attorney (like the ones at Schooley Law Firm, PC) or tax advisor to ensure that a living trust is structured in a way that maximizes tax benefits and complies with relevant regulations.
ACTEC Fellows discuss the tax implications of setting up and funding a living trust and what individuals need to understand when consulting with a tax advisor in this week’s podcast.
When considering a living trust as part of an estate plan, it's essential to seek professional guidance to fully understand the tax implications and ensure the trust is structured to achieve the desired tax benefits.