Since I am hoping to avoid some taxes, I was thinking that it would be better to put the banks accounts, etc in the trust.
We currently have them as PODs on each account. As I understand it, they would not be included in probate, but would be considered income to the surviving person and therefore, it would be necessary to pay the additional income taxes during the next tax year.
But, if they were put into a trust, taxes would not be paid as either estate or income. Am I incorrect in my thinking?
Liz
I am a tax professional and I think that you are completely misinformed as to what would be taxable, and completely misinformed as to what a trust can or could do.
I think that it would be in your best interest to get a consult with a tax professional to talk about all of this, and to get a clearer picture, based on the details, of what might or might not be taxable.
For example, unless your estate is HUGE, estate taxes are likely not an issue for you. If your estate was huge enough that estate taxes would be an issue, its unlikely that you would be seeking advice from an internet forum.
Bank accounts that pass to a beneficiary would rarely result in any tax, other than the normal tax on interest earned after the passing of the decedent. Retirement accounts could result in tax, but only if the beneficiary chose not to roll the retirement account into a retirement account of their own. Stock accounts could result in tax, but only if the stocks are sold....etc.
Please get yourself a consult with a tax professional.