| Alan R. Horvath, Attorney at Law |
| Frequently Asked Trust Questions |
| Phone: 209 754-5291 Fax: 209 754-5293 |
| ahorvathlaw@sbcglobal.net |
P.O. Box 81
596 Mountain Ranch Rd.
San Andreas, CA 95249
596 Mountain Ranch Rd.
San Andreas, CA 95249
How is a Revocable Trust Taxed Upon Death?
While a trust avoids probate, a revocable trust does NOT avoid estate taxes.
Estate taxes are based on everything that is controlled by the decedent at the time of death. By definition, if a
trust is revocable, the person who established the trust controls those assets at death. They could at any time
have revoked the trust and done whatever they wanted to with the assets.
Whether or not any tax is actually due will depend on the estate tax exemption in effect at the time of death.
Estate taxes can also be avoided on any gifts left outright to either charity or a surviving spouse.
While a trust avoids probate, a revocable trust does NOT avoid estate taxes.
Estate taxes are based on everything that is controlled by the decedent at the time of death. By definition, if a
trust is revocable, the person who established the trust controls those assets at death. They could at any time
have revoked the trust and done whatever they wanted to with the assets.
Whether or not any tax is actually due will depend on the estate tax exemption in effect at the time of death.
Estate taxes can also be avoided on any gifts left outright to either charity or a surviving spouse.
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