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Q.Does A Revocable Living Trust Provide Tax Savings?

A.NO. This is a very common misconception. Placing property in a living trust or revocable living trust will NOT reduce your income or estate tax liabilities any more than a Will. When you pass away, the trust assets are included in your estate for federal estate tax purposes. However, if your estate exceeds $2,000,0000 (the present federal estate tax exemption), your attorney can use of a variety of more complicated, Irrevocable Trusts and/or incorporate tax-saving measures into your trust, such as a bypass trust, dynasty trust, charitable gift, or marital deduction trust.

Also, a living trust does NOT protect assets from creditors or future lawsuits while you are alive and in control of the trust (acting as its Trustee).

Copyright 1999-2019 Melissa C. Marsh. All Rights Reserved. All Information on this website is subject to a Disclaimer and Use Agreement. This information is provided as general information only and should not be construed as legal advice. We advise you to seek the advice of competent legal counsel to address your own specific questions, facts and circumstances.