Also, a testamentary trust could be established in the will which could have the same benefit as the credit by pass trust created in the living trust. This is rare, however, because most people who are this sophisticated in their wills usually go into living trusts. It must be emphasized that a living trust does not eliminate estate taxes. A good attorney should be consulted if you are considering a living trust. If you have a living trust, or are considering one, make sure that it is properly funded.
Many people create living trusts and then forget to put their assets in the trust.
You are wasting your time with the living trust if you and your attorney do not pay attention to this crucial detail. You would like to sell the land and convert it to an asset that could pay current income to you. If you sell the land, you will have to pay a substantial capital gains tax and lose much of your asset's value in the process. The CRT could then sell the asset and not have to pay the capital gains taxes. This would allow all the money to be reinvested in income-producing vehicles such as bonds, Ginnie Maes, CDs, income stocks, etc.