DOES A REVOCABLE LIVING TRUST SAVE ESTATE TAXES?
Revocable living trusts are often credited with saving estate taxes, but this is not entirely accurate. Your retained interest and power over the trust assets will cause the trust to be included in your taxable estate at death. The trust can be drafted to minimize the effect of estate taxes, but the same estate planning techniques are available to persons who choose to use a will as those who choose a revocable living trust. WHAT ARE THE TRUSTEE’S RESPONSIBILITIES? Serving as trustee is no simple task. While very important, the prudent investment of trust assets is not a trustee’s only responsibility. Your trustee’s exact powers and duties will depend on the instructions in your trust agreement. But, in general, your trustee will: • Hold trust property • Invest the trust assets • Distribute trust income and/or principal to the beneficiaries, as directed in the trust agreement • Make tax decisions concerning the trust • Keep records of all trust transactions • Issue statements of accoun
