At Capital Tax, we understand that estate planning can be complex and daunting. That’s why we are here to guide you every step of the way. Our team of Certified Public Accountants (CPAs) offers specialized living trust tax services designed to protect your assets and ensure your wishes are carried out effectively in the most effective tax manner.
A living trust is a powerful estate planning tool that allows you to manage your assets during your lifetime and seamlessly transfer them to your beneficiaries upon your passing. Here’s why a living trust might be right for you
Avoid Probate: Assets held in a living trust bypass the lengthy and costly probate process, ensuring a smoother transfer to your heirs.
Maintain Privacy: Unlike a will, a living trust is not a matter of public record, helping to keep your estate details private.
Flexible Control: You retain control over your assets during your lifetime and can amend or revoke the trust as needed.
Incapacity Planning: If you become incapacitated, your appointed successor trustee can manage your assets without court intervention.
At Capital Tax, our team combines deep expertise in accounting with a thorough understanding of estate planning. Here’s why we stand out:
Experienced Professionals: Our CPAs have extensive experience in managing and advising on living trusts and estate planning.
Personalized Service: We provide a tailored approach, focusing on your individual needs and goals.
Holistic Approach: We integrate our trust services with your overall financial strategy to ensure comprehensive planning.
Commitment to Excellence: We are dedicated to delivering accurate, reliable, and timely advice to secure your financial future.a
At Capital Tax, our team combines deep expertise in accounting with a thorough understanding of estate planning. Here’s why we stand out:
Find answers to our question about our consulting coverage options.
A living trust is a legal arrangement where a person (the grantor) transfers ownership of their assets to a trustee to manage for the benefit of designated beneficiaries. The grantor retains control during their lifetime, and the trust becomes irrevocable upon their death, helping to avoid probate and simplify asset distribution.
The main purpose of a living trust is to avoid probate, which can be time-consuming and costly. It also allows for privacy (since probate is a public process) and provides a way to manage assets in case of incapacity.
One downside of a living trust is that it can be costly and complex to set up compared to a simple will. Additionally, assets not properly transferred into the trust can still go through probate, and the trust does not provide protection from creditors or estate taxes.
Yes, you generally pay income tax on any income generated by assets in the trust. However, if the trust is revocable, the income is taxed to the grantor, and if it’s irrevocable, the beneficiaries may pay taxes on distributions they receive.
The 7-year rule is relevant to inheritance tax. If you give away assets or place them in a trust and live for 7 years after the transfer, the assets are typically not included in your taxable estate. If you die within 7 years, the value of the assets may be subject to inheritance tax.
One downside of putting your house in a trust is that it may complicate your mortgage or title situation, especially if the house has an outstanding mortgage. Additionally, if you need to sell the property, it can involve more paperwork and potentially higher fees than selling an individually owned property.
There is no limit on how much money you can put in a living trust. However, there may be tax implications for larger estates, such as estate or gift taxes, depending on the value and type of assets.
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