Bypass Trusts: Capital Gains Tax Savings Strategies for 2017, Part 2

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by WealthCounsel Education Staff

Many scholars believe there’s a good chance the federal estate tax will be repealed soon based on the tax priorities of President-elect Donald Trump and Republican leadership in Congress. That being said, the reality is that President Obama already repealed the estate tax for 99.8% of Americans in 2012.

Trump and GOP leaders in Congress continue to promise significant future tax reforms, including a permanent repeal of the “death” tax. The tax relevance of bypass trusts, designed to prevent the assets held in trust from being included in the surviving spouse’s estate when he or she later dies, could be affected by those reforms.

Matthew T. McClintock, JD, WealthCounsel’s Vice President of Education, says that, while capturing capital gains in a bypass trust can be troublesome, creative planning and administration can dramatically reduce or eliminate the impact of unrecognized capital gains. Learn how in this second of our three-part series.