Estate Taxes Are Not Avoided SImply Because of a Trust

If you think that by simply creating a revocable living trust ,as opposed to a will, that certain inheritance taxes will be avoided, you may want to think again.

People that are not familiar with the estate litigation process may be proceeding on these false presumptions. Revocable living trusts are like Switzerland in the battle of inheritance taxes, they remain neutral. Meaning, the instrument itself neither creates more or less taxes. The estate taxes incurred are based on the recipients of the assets whether it be a spouse, your children, or a charity.

Of course there are specific trust instruments that are solely used for avoiding or lessening a tax burden, specifically, a trust like a charitable trust. But even then it is the beneficiaries that are considered by the IRS as allowable deductions, not just merely having a charitable trust instrument.

Before deciding on any trust instrument please consult with a professional estate litigation Attorney who will know exactly which type of instrument will work with the size and scale of the estate assets that you possess.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

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