Elkhart, IN asked in Estate Planning and Tax Law for Virginia

Q: i am from Virginia and have questions abuot Estates and Trusts.

is the value of a Trust ever properly counted in thevalue of the Estate when the person whi died is also the grantor of the TRust?

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T. Augustus Claus
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A: In Virginia, the inclusion of trust assets in a decedent's gross estate largely depends on the nature of the trust and the powers retained by the decedent. If the deceased was the grantor of a revocable trust, meaning they retained the ability to alter or revoke the trust during their lifetime, the assets within that trust are generally considered part of their gross estate for estate tax purposes. This is due to the control the grantor had over these assets. In contrast, assets in an irrevocable trust, where the grantor has relinquished control and cannot alter or revoke the trust, are typically not counted in the decedent's gross estate for tax considerations. While revocable trusts do allow assets to be counted for estate tax, a primary advantage they offer is bypassing the probate process.

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