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Will a Living Trust avoid income taxes?

Answer

No.  The purpose of creating a Trust is to protect your loved one's right to manage your assets if you become incapacitated and to inherit your property when you die.  It is not a vehicle to reduce or delay the payment of taxes.  In fact, as trustee of your Trust, you will continue to use your own Social Security number to pay any taxes on income earned in interest on trust assets, just as you do now with assets that are owned by you outside of your Trust.  Creating a Trust does not increase or add any liabilities and you do not need to file a special tax return.