THE LAW OFFICES OF KENNEDY & JACKSON THE LAW OFFICES OF KENNEDY & JACKSON
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Trusts & Tax Implications

Many people believe they can minimize taxes by planning their estate with a trust. While many of the trusts we create for clients at The Law Offices of Kennedy & Jackson can help to minimize or eliminate gift and estate taxes, other trusts are tax neutral.

To achieve the tax benefits you are seeking while meeting other goals such as control of assets, it’s important to consult an experienced estate planning attorney. Our Houston law firm has prepared and maintained estate plans on behalf of families throughout Texas.

TRUSTS AND TAX PLANNING

The most common type of trust, the revocable living trust, is tax neutral. In other words, assets held in a revocable trust offer no more or no fewer tax advantages than assets held in your personal name. However, there are trusts that offer tax advantages. For example:

  • Grantor-retained annuity trusts, qualified personal residence trusts, charitable trusts, life insurance trusts and private foundations can remove assets from your estate, minimizing or eliminating the need to pay estate taxes.
  • An AB trust can pass the $5 million estate tax exemption from a deceased spouse to the surviving spouse.
  • A testamentary trust (a trust including a will) allows income from the trust to be taxed as a separate entity (a trust) rather than simply adding the earning/income to the owner’s income. This can provide a lower marginal tax rates.
  • A generation-skipping trust allows you to leave up to $2 million to grandchildren without any transfer tax.

There are many different types of trusts, and each has different tax implications. Our two attorneys are each board-certified in estate planning and probate law by the Texas Board of Legal Specialization, and each is a frequent lecturer on estate planning topics to other lawyers throughout the state. If you have questions about trusts and taxes, we can provide you with the answers.

CONTACT A TRUSTS AND TAX IMPLICATIONS ATTORNEY IN HOUSTON

You will work directly with one of our experienced partners throughout the estate planning process. Our law office is located in the Galleria area of Houston, with free on-site parking available next to our office building.

To schedule an appointment with one of our board-certified attorneys, call 713-783-7444 or send us an email.