Keep me logged in until I sign out. The trust is one the most useful estate planning tools. Property in a revocable trust is treated as if it belongs to the grantor.
Interest earned on the account is taxed to the grantor.
The principal and any accumulated interest in the trust at the time of the grantor's death is part of the grantor's estate for estate tax purposes. Irrevocable trusts cannot be changed, but tax and Medicaid advantages may outweigh this loss of control. The principal and interest in an irrevocable trust is not considered for estate tax purposes, and the grantor does not pay income tax on interest earned by the trust property unless it is paid to the grantor. Through a charitable trust, you can take an immediate tax deduction for stocks or real estate and still receive dividends or reside in your home. The amount of the deduction depends on your life expectancy.