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  The Wealth Counselor

A monthly newsletter for wealth planning professionals
Prepared by The Advisors Forum
Edited and distributed by

  Carrell Blanton Ferris & Associates, PLC   
May 2017
In This Issue

How a Community Property Trust Can Save Tens of Thousands of Dollars in Capital Gains Taxes

Upcoming Continuing Education  

Estate Planning for IRAs

780 Lynnhaven Parkway, Suite 150, Virginia Beach, VA 23452

Program is approved for 1 hour of Continuing Education credit.  There is no charge but seating is limited.  A light breakfast will be provided.  Registration starts at 8:30 and program will start at 9:00 a.m.



Stay tuned for details on locations and topics.  

How a Community Property Trust Can Save Tens of Thousands of Dollars in Capital Gains Taxes

(Original article prepared by WealthCounsel. Used by permission, edited and modified by James W. Garrett, Esq.) 
Community property trusts can save your clients tens of thousands of dollars in capital gains taxes, and that is just one of their many benefits. This lesser-known strategy is not necessarily the best fit for all couples either because of their assets or state of residence. However, for households you work with that can make the most of them, it is a planning tools that could have a significant impact on keeping more of the value of their estates in the family.

These trusts offer a huge benefit to couples who take advantage of them. There's also a lot to gain for their financial advisors. Thanks to the double step-up for property held in this type of trust, your clients will retain a significant amount of wealth that would otherwise go to the IRS because of the capital gains tax. So it is a solution that provides better cash flow for your clients and more assets under management for you: a win-win for all parties.

What is community property, and what is a community property trust?

Before we get into the details, let's start with two definitions:
  • Community property: Assets a married couple acquires by joint effort during marriage if they live in one of the nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
  • Community property trust: A special type of joint revocable trust designed for couples who own low-basis assets, enabling them to take advantage of a double step-up. Tennessee and Alaska are the two places you can form these trusts, even for clients who do not live in those states.

Note: Differentiating between community property states and states in which community property trusts can be created can be a bit tricky. To put it simply, assets acquired jointly during marriage within those nine states are automatically considered community property. However, in Tennessee and Alaska, married couples can create a special trust called a community property trust. This trust effectively opts your clients into the same benefits that couples automatically enjoy in those states, at least for assets transferred into these trusts.

We invite you and your clients to join us for our new seminars

Nuts & Bolts of Trust and Estate Planning 

Why Your Clients Will Want to Attend:
  • Find out if estate plans is up to date in light of changes in the tax law.
  • Learn how to change plans, so that it will be easier for loved ones to administer it at death.
  • Make sure their IRA and other retirement plans are protected for beneficiaries.
  • Learn how estate plans can provide protection in the event a spouse remarries following own death.
  • They want a "refresher" on how a Revocable Living Trust works and is administered.
  • Learn about funding Revocable Living Trusts to be sure their estate plan will work properly.
  • Have not reviewed estate plans since 2012.

For all upcoming dates and locations, please  click here.

Please register by calling your local office or online at

There is no attendance fee, but seating is limited.  The attendees do not need to be clients of Carrell Blanton Ferris.   

Note: This Workshop will be offered periodically. For future dates for this workshop or for our introductory seminar, Wills vs. Trusts, please consult our website.

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