Page 4 - Jupiter West - March '25

Page 4, Jupiter West
Does Your Revocable Living Trust

Reduce Your Federal Estate Tax Bill?

By Anné Desormier- the trustmaker’s taxable estate. On the other hand, the assets 2. To plan for mental incapacity. If you become unable
Cartwright, JD, Esq. left to noncharitable beneficiaries will likely be exposed to to manage your affairs while you are still alive, the successor
Many believe that once they federal estate tax liability if the remaining assets exceed the trustee you name in your revocable living trust will be able to
set up and fund a revocable current federal exemption amount. In other words, if your manage trust assets for your benefit without the need for court
living trust, property held in beneficiaries are your children, your brothers and sisters, your involvement. Like the benefit of avoiding probate discussed
the trust will completely avoid nieces and nephews, your best friend, another trust, or even a above, removing the need for a court-supervised guardianship
federal estate taxes after they for-profit business, then the property they inherit through the or conservatorship could save time and thousands of dollars in
die. A living trust does not trust could be subject to federal estate tax depending on the size legal fees and court costs, depending on your state of residence.
provide any unique estate tax of your remaining estate. Otherwise, any property distributed 3. To keep your final wishes private. A revocable living
avoidance strategies. to qualifying charitable organizations through the trust passes trust is a private agreement that remains private after you die.
The primary mechanisms free from federal estate tax. In most cases, the only people who will need to know the terms
for reducing estate taxes—the Married Trustmakers And Estate Taxes of the trust and what will occur during administration are the
unlimited marital deduction and the charitable deduction—apply Married couples have both the charitable and unlimited trustee and your named beneficiaries. Usually, this document
whether money or property (sometimes referred to generally as marital deductions available to them. The charitable deduction is not required to be filed with the court, which will prevent
assets) are held in a trust or held directly by an individual. The functions the same way as described above for the single strangers from knowing what you own and how you want what
unlimited marital deduction allows the transfer of assets to a individual. With the unlimited marital deduction, all qualifying you own to be distributed and managed.
U.S. citizen surviving spouse free from estate tax, while the transfers of assets held in your trust that pass to your U.S. citizen Final Thoughts On Revocable Living Trusts And Estate Taxes
charitable deduction permits tax-free transfers to qualifying spouse after your death will likely not be subject to estate taxes For many people, a revocable living trust is the ideal way to
charitable organizations. These deductions are not exclusive due to the unlimited marital deduction. However, to be deemed organize their final affairs. While the estate tax avoidance tools
to living trusts but can be incorporated into a trust-based estate a qualifying transfer, the assets must either pass to the spouse used by a living trust are not exclusive to such trusts, they can be
plan to ensure that assets are distributed tax-efficiently. outright or be held and administered in a special type of trust incorporated into a trust-based estate plan to capture the general
Before delving into estate tax planning, it is important to for your spouse’s benefit. benefits that living trusts offer and provide equally important
understand that estate taxes come into play only when someone On the other hand, if you are married and you create and additional benefits unrelated to tax savings.
gifts assets during their lifetime and at their death that combine fund a revocable living trust and name both your spouse and If you are interested in learning more about a revocable living
to exceed a certain threshold value. This threshold is called the your children as current beneficiaries after you die, the portion trust and its benefits for you and your loved ones, call us.
federal lifetime exclusion amount and is currently $13.99 million of the trust passing to your spouse (utilizing the unlimited If you have questions about your estate plan and what
for 2025. Unless the trustmaker and the trustmaker’s revocable marital deduction) will likely not be subject to federal estate documents you should have in place to plan your estate, schedule
living trust have combined assets exceeding this amount, there tax, and the portion passing to your children may be subject to a free consultation today by calling our office at (561) 694-7827,
will likely be no federal estate tax due at a trustmaker’s death. estate tax (depending on the value of the assets and the federal Anné Desormier-Cartwright, Esq., Elder and Estate Planning
However, for purposes of this article, we will assume that the lifetime exclusion amount available to you when you pass). If Attorneys PA, 480 Maplewood Drive, Suite 3, Jupiter, FL 33458.
trustmaker’s assets owned individually and in the revocable trust you include one or more qualifying charitable organizations The content of this article is general and should not be relied
are valued at more than the lifetime exclusion amount. as beneficiaries, the portion passing to the charities will likely upon without review of your specific circumstances by competent
Caution: If you live in a state with a state estate tax, you not be subject to estate tax. legal counsel. Reliance on the information herein is at your own
need to work with an experienced estate planning attorney to Do You Need a Revocable Living Trust? risk, as it expresses no opinion by the firm on your specific
ensure that these concerns are addressed appropriately, as state If a revocable living trust does nothing to reduce your circumstances or legal needs. An attorney client relationship is
estate tax thresholds are often lower than the federal threshold federal estate tax bill that cannot be done by holding the assets not created through the information provided herein.
and may require additional planning. in your own name, why should you consider setting one up? To comply with the U.S. Treasury regulations, we must
Single Trustmakers And Estate Taxes There are at least three good reasons: inform you that (i) any U.S. federal tax advice contained in this
Of the two planning strategies mentioned above—the 1. To avoid probate. Assets held in your revocable living newsletter was not intended or written to be used, and cannot
unlimited marital deduction and the charitable deduction— trust at the time of your death will avoid the court proceeding be used, by any person for the purpose of avoiding U.S. federal
only the charitable deduction tool is available to single known as probate. Depending on your state of residence at the tax penalties that may be imposed on such person and (ii) each
individuals. With this tool, all assets in a person’s trust left time of your death, this could save a great deal of time and taxpayer should seek advice from their tax advisor based on the
to qualifying charitable organizations will be removed from thousands of dollars in legal fees and court costs. taxpayer’s particular circumstances.

Roll The Dice For A Good Cause from page 1 Tickets for the Show Us
Your Hearts Gala are $550 per
included but honored person, with tables starting at
and celebrated. The best $5,500. Sponsorship and
part of the evening is that underwriting opportunities
everyone leaves a winner are available.
having made an impact on The casino gaming
so many lives.” tables are provided for
This year’s cochairs, entertainment purposes
Tara and Brian Evans, only by Casino Party Nights
began their journey with Florida, Inc. Players must be
The Arc of Palm Beach age 18 or older to play and
County 18 years ago when must be present to win prizes.
they sought specialized For more information and to
education and care for their purchase tickets, please visit
daughter Brenna, who has arcpbc.org/events or call
disabilities. In 2006, Tara (561) 842-3213.
and Brian enrolled Brenna in Tara and daughter Breanna Photos courtesy of
The Arc’s Potentials School, Evans Jessica Lynn Photography The Evans Family Tara and Brian Evans with daughter Breanna
now Bodwell Academy.
Through The Arc, Brenna was able to take her first steps edwardjones.com/findyourrich | Member SIPC
using a gait trainer and communicate for the first time with
a communication device, two incredible milestones that will What does it
forever be cherished.
“The Arc of Palm Beach County cares about helping
individuals with disabilities from birth to old age,” said Tara mean to be rich?
Evans. “We are celebrating The Arc’s 19 unique programs
dedicated to empowering children and adults with disabilities
across the county. The gala allows us to present our mission Maybe it’s less about a
to a large audience and showcase the high-quality care and
commitment we bring to individuals and families. magic number and more
about discovering
the magic in life.

Captain’s was established in 1980 servicing
Palm Beach County and is a privately
owned and managed company. Sally S Stahl, CFP®, AAMS™ Let’s prepare for your
Captain’s is committed to providing What does it mean to be rich?
Financial Advisor
dependable, reliable and professional Maybe it's less about a magic number and more about discovering future together.
ground transportation to and from all the magic in life.
South Florida Airports and Seaports. PBCVH212 1851 W Indiantown Rd Ste 106
Jupiter, FL 33458
To reserve your vehicle: Let's prepare for your future together.
561-798-2180 or 800-634-7890 www.captainsairport.com Sally S Stahl, CFP , AAMS™ © 2025 EDWARD D. JONES CO. ALL RIGHTS RESERVED.
561-748-7600 ®
Financial Advisor
1851 W Indiantown Rd Ste 106
Jupiter, FL 33458
561-748-7600
CAT-16762-A-A1-AD © 2025 EDWARD D. JONES CO. ALL RIGHTS RESERVED. AECSPAD 24135450