Qualified Dispositions in Trust

Qualified Dispositions in Trust refer to specific transfers of assets into a trust that can help reduce estate and gift taxes. When individuals place assets in certain types of trusts, they may not be subject to immediate taxation, provided they follow IRS regulations. This allows the trust’s assets to grow and potentially benefit heirs without incurring taxes until distributed, depending on the trust type. By using qualified dispositions strategically, individuals can effectively manage their estate tax liability and preserve wealth for future generations.