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Can't you move all your savings to a trust that would pay only to your kids?
by frongpik 6y ago
Can't you move all your savings to a trust that would pay only to your kids?
- javert 6y agoNot that I'm aware of.
- throwawayboise 6y agoYes. You need an estate attorney to set it up properly but you can put all your assets into a trust with designated beneficiaries. This also has the advantage of greatly simplifying the probate process compared to a simple will. IANAL but I think this is because the trust does not "die" so all the assets the trust owns are excluded from probate.
- javert 6y ago> has the advantage of greatly simplifying the probate process Which is why people do it. I have seen no evidence that trusts can reduce inheritance taxes. It you have specific examples, I'd appreciate that. I've always been told by wealth management people that trusts are for managing inheritance, not for reducing taxes on it. Maybe I don't have good enough people. Some of the articles online use a lot of weasel language. For example, consider: https://www.bankrate.com/finance/taxes/estate-taxes-trusts-1.aspx https://www.bankrate.com/finance/taxes/estate-taxes-trusts-1... It says: "... An amount up to the estate tax exemption is placed into a trust ..." Yeah - so not helpful! Also says: "... Shares of a privately held company that are assigned a low value are placed in the trust and allowed to grow, so that appreciation passes to the heirs tax-free..." Yeah, but appreciation passes tax-free anyway. If your children inherit stocks from you, they get a cost basis step-up to the value of the stocks on the day of your death. The article is written as if this has something to do with the trust, but it doesn't.