Convert from trust to individial ownership ????

[TenOC]

What is the name of your state (only U.S. law)? SD


Years ago when estate taxes was on estates more than $600,000 the wife and I set up the typical A-B bypass trust. Wife died 10 years ago. Current value of bypass trust $1.5M. Now that estates need to be more than $5M before estate taxes I do not need the trust. ????

The step-up valuation of individual owned assets may offset the probate problems for an estate between $2M and $3M.

My question, Is there a long in detail discussion (paper - report) on the pros/cons of "de-funding" the trust and converting the trust assets to individual ownership??? Or simply revoking the trust

 

[FlyingRon]

The wife's trust is irrevocable now.
Your best bet is if the trust allows you to draw from it, you can draw whatever you are allowed.

 

[TenOC]

The wife's trust is irrevocable now.
Your best bet is if the trust allows you to draw from it, you can draw whatever you are allowed.

I understand the trust is irrevocable. However, I have the power to withdraw assets for my maintenance.

My question was related more to MY revocable trust which is taxed using my Social Security number.

 

[FlyingRon]

You can do whatever you want with your trust. Just take the assets out of it. It's pretty much the reverse of what you had to do to put things into it.
An assetless trust is just a piece of paper.

The question is why? It would depend on your motivations with regard to your heirs. I'm not sure why it would make any difference at this point (your trust isn't going to get any different tax treatment than your estate at this point). All it does is move everything back into probate at your death.