Taxes

THERE ARE TAX ADVANTAGES THAT ARE AVAILABLE ONLY UNDER AN ESTATE PLAN USING A TRUST.

You probably do not want tax considerations to be the only factor --or even the primary factor -- in determining how your estate is to be handled upon your passing away.  But if you were told by your attorney that there are substantial tax savings to your estate if you structure it in a way that is also compatible with your desires for distribution, you would very likely be interested in adapting.

The most common adaptation under current estate tax laws is to take advantage of the "lifetime exemption" of both a husband and wife in a family.  The exemption relates to how much of your estate is not subject to estate tax, and each individual is entitled to their own exemption amount.  

However, a married couple just giving all of their estate to the surviving spouse outright will normally not take advantage of both of their lifetime exemptions.  This means that if your estate plan is to give all to the surviving spouse, and then to children upon the passing of the surviving spouse, only the lifetime exemption of the surviving spouse is normally used.  That is only half as much of your estate that avoided estate tax, as was possible if you had used both exemptions.

The adaptation necessary to use both lifetime exemptions involves giving some or all of the estate to the surviving spouse in a trust, rather than outright.   The exact terms of that trust are subject to current tax laws, but generally they do place some restrictions on the use by the surviving spouse, but are generous enough that many married couples are very willing to adapt to take advantage of the possible estate tax savings.

At Providence First, we work closely with your estate planning professional and know the details of how the adaptations you choose for tax purposes will be carried out.  All trust officers are legally trained, and with our focus solely on personal trusts, we offer experience in implementing tax strategies and planning. 

Tax savings may not be the primary function of your trust, but at Providence First, we are experienced in helping to make your trust estate as tax efficient as possible. 

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