✉news BusinessPersonal Finance first seen 5 h ago, last 30 min ago, peak #15

Irrevocable Trusts May Cost Heirs the Tax-Free Step-Up, IRS Ruling Says

Original: Put Grandma's House in an Irrevocable Trust to Protect It From the Nursing Home and the Kids Will Lose Their Tax-Free Step-Up. The IRS Ruled on It in 2023

Families putting a parent's house into an irrevocable trust to shield it from nursing home costs may be sacrificing a major tax break. A 2023 IRS ruling addressed whether heirs still receive the capital gains step-up at death when the home sits in such a trust. Estate planners warn that protecting assets from Medicaid recovery can complicate or eliminate that benefit, leaving children facing capital gains taxes they expected to avoid.

Why now: The 2023 IRS ruling is prompting renewed debate among families and advisers weighing Medicaid protection against heirs' tax benefits.

Internal Revenue ServiceMedicaid

Open on news →

Rank over time, top of the chart is #1. 5 snapshots from 5 h ago to 30 min ago.

Evidence

• Put Grandma's House in an Irrevocable Trust to Protect It From the Nursing Home and the Kids Will Lose Their Tax-Free Step-Up. The IRS Ruled on It in 2023 · 24/7 Wall St.

API: https://socialmediatrends-api.osmike.com/v1/trends/426979