yes and no, and don't call me 先生, lol...,

first of all, don't call me 先生, I am not old, and I don't want to be old..

 

3.

the idea of using living trust is, to avoid probation, probation in court may take up to 2 years, and can cost up to 15% or more of your total estate.

now to your case, if hu*****and and wife worth 7mil, and max exemption for estate tax is 5mil.

with or without a trust, the outcome is the same, if hu*****and die, his estate can excise the his exemption, which be 5mil. he can choose to pass his estate to heirs, instead of wife, thus no estate taxes on his part. now whats left of that 2mil, if wife die, her exemption, again, be 5 mil.

now here is the different, without a trust, when hu*****and die, if the estate choose to pass along to heirs, it must go thru probation, which usually a long and expensive process, and while its in court, the court is in control of the estate, meaning you can't easy sell anything...many people choose just pass to wife, which doesn't require probation process, fast and easy...

but with a trust, when hu*****and die, his trust still living, because itself is a separate entity, no probation needed, the executor can prolong that trust after death, which will require a new tax id, the 5 mil can sit in the trust, without probation, the executor can choose to exercise how to distribute the assets, when and how, according to the trust paper. the trust must dissolve 19(maybe21???) years after the last direct beneficiary die.

also, whether with or without a trust, the estate comes with a great bonus known as the "step up" in tax basis, meaning when you die, whatever you depreciated, now back to its market value, without paying capital gains tax..

所有跟帖： 

• 謝謝JY101的詳盡解釋。 -古石- ♂ (776 bytes) () 01/31/2012 postreply 20:13:28

• haha, just call me bro.... -jy101- ♂ (0 bytes) () 01/31/2012 postreply 20:39:41