I am trying to learn about trusts and whether if/how they might be used to benefit a married couple during their lifetime. Assume this couple has no kids, no siblings, etc., which seems to be the usual situations for which trusts exist.
Specifically, can the couple set up and use a certain type of trust to reduce taxes each year on their taxable investment account? And/or as a shelter to defer taxes into the future? If so, what kind of trust would that be and how does it work?
Thanks for helping.
Trust for Married Couple with No Kids
Re: Trust for Married Couple with No Kids
No.Kookaburra wrote: ↑Tue Jan 19, 2021 10:08 pm
Specifically, can the couple set up and use a certain type of trust to reduce taxes each year on their taxable investment account? And/or as a shelter to defer taxes into the future?
Thanks for helping.
You are welcome!
Re: Trust for Married Couple with No Kids
Trusts are used to reduce estate taxes.
Re: Trust for Married Couple with No Kids
Depending on what state you're in, it might be possible to use an incomplete gift trust to avoid state income taxes. See my article on this in the September 2005 issue of Trusts & Estates: https://www.kkwc.com/wp-content/uploads ... rantor.pdf.
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Re: Trust for Married Couple with No Kids
a
And for some, avoiding probate is a motivation.
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