If you own substantial assets, you may want to consider setting up a living trust to bypass the probate process. Probate is a court-supervised procedure that ensures a deceased individual’s assets are distributed appropriately. However, it often involves complex legal steps, additional costs and public disclosure of your financial matters. A living trust can help you avoid these issues. From a federal income tax standpoint, a living trust is disregarded while you’re alive. The IRS treats the assets in the trust as if they’re still owned by you personally, meaning you must continue to report any income or deductions from those assets on your individual tax return. Contact us to learn more.
