Skip to content

A. Introduction

A. Introduction

This kind of Trust includes the “one size fits all” model widely touted in books and advertising. These are called “living Trusts,” just because they are created during lifetime, not by a Will. These Trusts will not save any taxes. Tax avoidance can be accomplished only by more complicated Trust arrangements, presented later.

BEWARE ! If a “living Trust” ad or proposal claims to save death taxes – as opposed to probate “costs” – either it is NOT so “simple,” or it is a scam. The assets of any Trust you control are subject to taxes, as if no Trust existed. Period.

The simple living Trust, sometimes called an “inter vivos” Trust (Latin, for “lifetime”) is revocable. The Grantor initially transfers ownership of assets to the Trust. But the Trust document reserves for the Grantor complete control over everything, including the right to terminate the Trust, during the Grantor’s life.

No comments yet

Leave a Reply

Note: XHTML is allowed. Your email address will never be published.

Subscribe to this comment feed via RSS