Irs Guidance
Explore IRS guidance on estate planning, gift taxes, and trusts. Learn how federal rules affect your estate plan and what thresholds matter for your family.
How does IRS guidance affect what I put in my living trust?
IRS guidance shapes key decisions inside a living trust, particularly around taxes and asset transfers. For example, the federal estate tax exemption is currently $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Jul 13, 2026View source per individual, meaning most families won't owe federal estate tax — but how assets are titled and transferred through a trust can still have income tax consequences. One often-overlooked benefit: assets held in a revocable living trust typically receive a step-up in basis, meaning their cost basis is reset to fair market value on the date of death26 USC § 1014Verified Jul 13, 2026View source, which can reduce capital gains taxes for heirs. Staying informed about current IRS rules helps families understand how their trust documents interact with federal tax law.
