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Benefits of Trusts for the Taxable and Non-Taxable Estate

VIEW PLANNING UPDATE (PDF)

SUMMARY

With the recent proposal by President Trump to eliminate the estate tax, this planning update provides a great reminder of both the non-tax benefits and estate tax benefits that trusts provide.

KEY TAKEAWAYS

  • While trusts do provide estate tax benefits even in light of flexibility in the federal estate tax laws, they also provide many benefits for people who have estates under the taxable threshold
  • There are many non-tax benefits of trusts that should be considered, including asset protection, marital property protection, and a suitable management structure for inherited assets
  • Despite the ease of “portability” planning, some trusts may still provide benefits, including:
    • Shielding appreciation of assets from estate tax
    • Leveraging other exemptions that may not have been actively utilized in a deceased spouse’s plan