Trust Term (Proposed)

The number of years that the trust will exist. At the termination of the trust, the clients give up all retained interest in the gifted asset. The longer the trust lasts, the lower the taxable transfer will be, since the retained interest grows each year.

If the clients die before the termination of the trust, the full value of the property will be taxed in their estate. If the clients die after the trust termination, they will avoid taxation of the full value of the property in their estate. The estate will only be taxed on taxable transfer if the clients have used up their applicable credit.

Note: This prompt is not available if you select Charitable Remainder Trust or Charitable Lead Trust from the Trust Type menu.