What are the tax implications of setting up a trust?

What are the tax implications of setting up a trust?

Setting up a trust can have various tax implications, including potential estate tax benefits and income tax responsibilities. Would you like to know more about specific types of trusts?

Yes, what types of trusts are there?

There are several types of trusts, including revocable trusts, irrevocable trusts, and charitable trusts. Each has different tax implications. Do you want details on a specific type?

Tell me about irrevocable trusts.

Irrevocable trusts cannot be changed once established, which can help reduce estate taxes. However, the assets are no longer considered part of your estate. Would you like to know how this affects your taxes?

Yes, how does it affect estate taxes?

Assets in an irrevocable trust are typically excluded from your taxable estate, potentially lowering your estate tax liability. It's a strategic way to manage taxes. Do you have any other questions about trusts?