Bypass Trusts: Capital Gains Tax Savings Strategies for 2017, Part 3

Resource Center

by WealthCounsel Staff

As mentioned in previous posts, there’s a good chance the federal estate tax will be repealed as part of a comprehensive tax overhaul based on the tax priorities of President Donald Trump and Republican leadership in Congress. However, the reality is that President Obama already repealed the estate tax for 99.8% of Americans in 2012.

Mr. Trump and GOP House and Senate leaders continue to tout significant future tax reforms, including a permanent repeal of the “death” tax. 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, along with flexibility, can dramatically reduce or eliminate the impact of unrecognized capital gains. Learn how in this brief.