Do Assets in a Living Trust Get a Step-Up in Basis?

Before we get into the concept of the step-up in basis, we should explain some of the reasons why you may want to use a living trust as the centerpiece of your estate plan. First of all, you do not have to be afraid of the word “trust.” Many people think that you sever your direct relationship with your assets when you create any type of trust. This is not the case with a revocable living trust. You as the grantor of the trust you can maintain control of the assets throughout your life. After all, when you look at the name, you can see that you have the right of revocation. You can dissolve the trust entirely at any time, and it would no longer exist. The grantor of the trust can also act as the trustee throughout his or her life. As the trustee, you control the assets, and you can also act as the beneficiary and receive distributions. There is no loss of control on any level, and this can be comforting to many people. You name a successor trustee to take over after you die when y


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