We have a joint trust being drafted where our two kids become trustees at age 30. Our bank, brokerage, and real estate will all be titled into our joint trust and upon the second death pass to Kids Trust A and Kids Trust B. This is for asset protection (divorce, lawsuits, incapacity, etc). The attorney is adding a clause that trust proceeds must be paid to the Kids (A&B) at least quarterly. This is to make sure that any taxes are paid at the beneficiary rate and not the Trust rate.
While, the brokerage and real estate will be stepped-up under current law, I would like to confirm that any proceeds (whether paid out quarterly or immediately) will be subject to favorable beneficiary tax rates vs. trust tax rates. We do expect that our entire estate (including non-trust 401ks and IRAs) will be under the current federal estate tax threshold and live in North Carolina.
Thanks
While, the brokerage and real estate will be stepped-up under current law, I would like to confirm that any proceeds (whether paid out quarterly or immediately) will be subject to favorable beneficiary tax rates vs. trust tax rates. We do expect that our entire estate (including non-trust 401ks and IRAs) will be under the current federal estate tax threshold and live in North Carolina.
Thanks
Statistics: Posted by ichee_marone — Thu Apr 25, 2024 2:40 pm — Replies 10 — Views 381