Updated July 22, 2015
What is a Trust Chicago Illinois
A trust is a living, breathing entity under the law which generally, holds title to an asset or group of assets.
The most difficult concept for most customers to understand is that you do not have to own an asset in order to control it or be able to profit from it.
Why is this important? From an estate planning perspective, if you don’t own something, then it isn’t part of your estate. If it isn’t part of your estate, it isn’t subject to estate taxes.
Let’s use a simple example. If your estate is valued at $3,000,000, above the current estate tax credit, then currently your estate would owe roughly $1,650,000 in taxes nine months after you pass on. If we transfer that $3,000,000 into a trust, then the estate would probably owe no estate taxes at all.
If you are having problems with What is a Trust Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
Chris@AccountingSolutionsltd.com
Additional Accounting Articles and information on my firm can be found at
www.AccountingSolutionsLtd.com
Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.