IRS quietly changes rule on how your children’s inheritance is taxed – here’s what you need to know to avoid a shock bill

Information
  • The agency has curbed the tax break on a particular kind of trust that is often used to minimize capital gains taxes
  • In the last decade, more families have begun utilizing ‘irrevocable’ trusts and the ruling will impact estate planning 
  • Americans have turned to irrevocable trusts to protect their assets from spend-down in order to qualify for Medicaid

the Revenue Ruling 2023-2 has confirmed that these trusts will now be subject to capital gains tax, which will have a substantial impact on estate planning for Americans.

IRS quietly changes rule on how your children’s inheritance is taxed | Daily Mail Online