Types, Features, and Taxation of Trusts

Free CFP Exam lesson in Estate Planning. 17 min read, ~2,523 words.

Revocable trusts avoid probate and manage incapacity but provide zero estate tax benefit; assets are fully included in the gross estate. Irrevocable trusts remove assets from the estate but require surrendering control, making the transfer a completed gift. Grantor trust status (income tax) and estate inclusion (estate tax) are independent...