Legal Question in Tax Law in New York

If I establish a revocable living trust using a trusted friend as both grantor and trustee and myself as beneficiary and fund that trust with a bank account opened in the name of the trust, is there any potential tax ramification to consider other than a gift tax on my money transfer to my grantor?

Asked on 7/25/17, 12:17 pm

1 Answer from Attorneys

Richard Bryan Richard Bryan Attorney PC

I don't understand who is going to be funding the trust.

The situation you describe is very unusual and personally I've never seen this done. You, as beneficiary, are going to put money into the revocable trust where your friend is the grantor? Very strange. And even if you set it up this way, since it's a revocable trust it's not a completed gift and so there probably aren't gift tax consequences anyway. This situation is too odd for me to give you any advice.

Good luck.

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Answered on 7/25/17, 1:57 pm

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