Tax Issues with Revocable Trusts at the Grantor's Death

By Ian Weinstock
CPA Journal
September 2015 Edition 

Revocable trusts are an increasingly popular substitute for wills, and for good reason: In many jurisdictions, funding a revocable trust during life can result in substantial time and cost savings after death by avoiding the state law probate system. A funded revocable trust can also be useful in incapacity planning during the grantor's life. Even an unfunded revocable trust that operates only as a receptacle for the pourover of an estate provides certain advantages after the grantor's death, including keeping the details of the grantor's testamentary dispositions private. This article addresses the recurring tax and reporting issues that arise when the grantor of a revocable trust dies.

[Original Article]