Trust for Married Couple with No Kids

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Kookaburra
Posts: 559
Joined: Thu Apr 02, 2020 11:14 pm

Trust for Married Couple with No Kids

Post by Kookaburra »

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.
Iorek
Posts: 1228
Joined: Fri Mar 08, 2013 9:38 am

Re: Trust for Married Couple with No Kids

Post by Iorek »

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.
No.

You are welcome!
oldfort
Posts: 2542
Joined: Mon Mar 02, 2020 8:45 pm

Re: Trust for Married Couple with No Kids

Post by oldfort »

Trusts are used to reduce estate taxes.
bsteiner
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Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Trust for Married Couple with No Kids

Post by bsteiner »

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.
TheGreyingDuke
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Joined: Fri Sep 02, 2011 10:34 am

Re: Trust for Married Couple with No Kids

Post by TheGreyingDuke »

oldfort wrote: Tue Jan 19, 2021 11:41 pm Trusts are used to reduce estate taxes.
a
And for some, avoiding probate is a motivation.
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells
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