How do I evaluate the new tax law changes? I need to know what type of living trust I have and whether/how my trust was designed to save estate taxes under prior laws?
Answer 2: Revocable trusts of single (unmarried) people are designed to avoid probate (a court procedure to clear title to assets standing in the name of a deceased person). Revocable trusts of single people are not designed to decrease estate taxes (a tax at death for the privilege of giving and receiving wealth). Some revocable trusts for married couples remain revocable and amendable when one spouse has died, typically because the amount of the couple’s combined estate is less than the spouse’s estate tax exemption. (see answer one) Some revocable trust for married couples (called A/B Trusts) split up into one revocable trust and one irrevocable trust on the death of the first spouse to die. The irrevocable trust contains the portion of the first spouse to die’s assets equal to the amount that the first spouse to die can pass on estate tax free (see answer one) The revocable trust contains the balance of the assets. The surviving spouse typically receives mandatory income and typica
Related Questions
- I executed a living trust naming my registered domestic partner as the primary beneficiary of my estate. Will my partners inheritance by trust be excluded from change of ownership reassessment?
- How do I evaluate the new tax law changes? I need to know what type of living trust I have and whether/how my trust was designed to save estate taxes under prior laws?
- What is an Irrevocable Living Trust?
