Revocable Trust and Irrevocable Trust

CFA Level III Portfolio Management
#1

Form the 2011 AM Question 1, it says both capital gain taxes apply to irrevocable trust and revocable trust when asset transfers to the trust. However, estate tax applies when selling from revocable trust and the tax is minimized due to increased to market value for the asset. Does it mean that when the asset is sale from irrevocable trust, it is subject to captial gain tax again, but it is calculated by later market value and the initial cost? Thanks.

#2

http://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91312887

#3

Thanks but they don’t have a conclusion, Do you have any thought cfa_student29? Thanks.

#4

Thanks but they don’t have a conclusion, Do you have any thought cfa_student29? Thanks.