If you were thinking about putting together a revocable living trust, this can be a powerful estate planning tool. It is one often chosen by people who want to avoid the probate process.
Numerous delays and expenses may be associated with your estate having to pass through probate, which prompts many people to put together a revocable living trust to make things easier for their loved ones in the future.
There are many different types of trusts, but revocable living trusts do not have a special tax treatment associated with them.
This is because the owner of this trust is still classified as the owner of the assets, so you will have to continue reporting income and earnings on your individual tax return as you did in the past. Revocable living trusts can help you avoid the problems typically associated with probate, but not those associated with the estate tax system.
A living trust may include provisions like language to generate a bypass trust upon someone’s death, but these same kinds of provisions are often included in wills or other estate planning tools. Talk to an experienced estate planning attorney today to learn more about the benefits of scheduling a consultation to put together a revocable living trust.