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Asset Transfers to Revocable Trust

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pinkhammf

New member
What is the name of your state? California

Question on asset transfers. I file jointly with my wife. I hold a brokerage account jointly my SS, and my wife has one as well with the same company but under her SS. The brokerage simply can't change title but rather they request I setup a Trust account. The trust account only has one SS associated with it. So my question is if I fill out the paperwork and say use my SS as we don't have a SS specifically for the trust, when I transfer her account into the trust now that my SS is being used, does this trigger any type of tax consequences? Should I instead change her account to a joint and then have it transferred? Thanks so much for any help\guidance.
 


Taxing Matters

Overtaxed Member
What is the name of your state? California
So my question is if I fill out the paperwork and say use my SS as we don't have a SS specifically for the trust, when I transfer her account into the trust now that my SS is being used, does this trigger any type of tax consequences? Should I instead change her account to a joint and then have it transferred? Thanks so much for any help\guidance.
Assuming that (1) both you and your wife are U.S. citizens or residents; (2) that the account is located in the United States; (3) you and your wife are not residents/citizens of any other country and (4) the trust is a grantor trust under the Internal Revenue Code (and revocable living trusts are one type of grantor trust) then the transfer of her accounts to the trust will not trigger any taxable event. There is no tax reason why you would need to change her account first to a joint account before transferring it to the trust, but perhaps there is some other reason why in your particular circumstances you might want to do it.
 

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