Income.
A revocable trust generally leaves the creator responsible for income tax; an irrevocable trust can, too, depending on retained powers and design.
Make sense of your choices
A trust does not automatically lower your taxes.
Name the tax before choosing a strategy.
The short version.
Gifts.
Transfers may raise reporting and other tax questions. A trust does not erase tax on income you earned.
Estate.
Estate-tax treatment depends on the structure and circumstances. We coordinate the questions with your CPA before changes are made.
More detail, if you want it.
Open the explanation and sources
What the IRS wants you to understand
Moving money into a trust does not automatically reduce taxes. The IRS explains that retained powers can leave the creator responsible for the trust’s income tax. A revocable trust falls into that category; an irrevocable trust can, too.
A trust also cannot make personal living costs deductible or erase tax on income you earned. Depending on its structure and activity, it may need its own return and beneficiary tax statements, and transfers may create gift-tax reporting. The question is what the arrangement actually does; its name does not determine the tax result.
Source: IRS: trust basics and tax questions.
Reviewed October 15, 2026. Summary of the linked IRS questions and answers.
General education, not advice for an individual matter. Applicable law and the relevant facts control. Discuss your circumstances with qualified counsel.
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