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Investors & landlords
There are pros and cons to leaving the rental in a trust and the person who started this conversation is aware of them or appears to be. The reason taxes can be more in a trust is because the rates are compacted so you get to a higher rate quicker than individuals do. Still trusts are flow throughs so those higher taxes can be avoided by distributing the income and gains to the individual benes. There won't be a further step-up in basis if the property remains in the trust but the trustee is aware of that and there has been a ton of talk in D.C. about getting rid of the step-up altogether anyway so in the long term you shouldn't be counting it as a given.
‎September 22, 2020
6:19 PM