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However, if the stock is placed within the trust, the cost basis for the stock would be stepped-up to million.

The capital gain of

However, if the stock is placed within the trust, the cost basis for the stock would be stepped-up to $2 million.

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However, if the stock is placed within the trust, the cost basis for the stock would be stepped-up to $2 million.

The capital gain of $1.85 million will essentially disappear once the stock is placed inside the trust.

Here's how it works: Upon the death of the investor, the assets specified in the trust agreement (up to a specified maximum dollar value) are transferred, estate-tax free, to the beneficiaries named in the trust (normally the couple's children).

A key benefit to this type of trust is that the spouse maintains rights to the trust's assets and the income they generate during the remainder of his or her lifetime.

The taxable amount must also be included in your taxable income.

The additional tax increases to 25 percent if you take the distribution from a SIMPLE IRA within two years of the date you first began participating in the plan. The first applies to individual retirement accounts, both traditional and Roth IRAs.

The steps necessary to accomplish this are fairly straightforward.

.85 million will essentially disappear once the stock is placed inside the trust.

Here's how it works: Upon the death of the investor, the assets specified in the trust agreement (up to a specified maximum dollar value) are transferred, estate-tax free, to the beneficiaries named in the trust (normally the couple's children).

A key benefit to this type of trust is that the spouse maintains rights to the trust's assets and the income they generate during the remainder of his or her lifetime.

The taxable amount must also be included in your taxable income.

The additional tax increases to 25 percent if you take the distribution from a SIMPLE IRA within two years of the date you first began participating in the plan. The first applies to individual retirement accounts, both traditional and Roth IRAs.

The steps necessary to accomplish this are fairly straightforward.

Certain government employees can access their retirement savings starting at age 50 if they retire or leave their jobs rather than waiting until age 55.

But when you take a distribution from your IRA, 401(k) or another retirement savings plan, you must generally include it as taxable income.

The withdrawal may also be subject to an additional penalty tax of 10 or even 25 percent.

In this article, we'll show you how a little careful planning, the use of a credit shelter trust and a step-up in basis can protect your spouse and eventually your heirs from massive estate tax and capital gains tax burdens when you pass on.

(For related reading, check out .) Estate Planning With Trusts Most estate plans begin with the creation and use of one or more types of trust.

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