FAQ Friday: Beneficiary of Different types of trust
On Friday, May 2, 2025, Attorney Steve Berger discusses what to do if you are a beneficiary of different types of trusts.
We’ll discuss 3 trusts. The first two might have been created in the 80s or 90s. There were some differences in taxes from back then which affected how these were setup.
One trust would be where parents are receiving from a non exempt trust, however when it passes to a grandchild, it will be subject to a generation skipping tax. This might be something we can help you with such as via depletion of the trust.
A more common trust is a family trust where a parent is a beneficiary left by their spouse. Children would need to receive a step up in basis.
Our office is happy to look at your trust and see if there are improvements we can help make.
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Bring your questions about estate planning and administration to our weekly Facebook Live with Mr. Berger on Fridays at 11am EST. Leave your email if you’d like to receive a notification of our response.