Why the 645 Election for Trusts has Become Important under ATRA 2012

Trusts are an attractive estate planning option because they provide an asset management vehicle during your lifetime and can provide more flexibility in terms of who receives your assets, and how they receive those assets. Another benefit is something called a "Section 645 election." Congress created an opportunity for trustees of a funded revocable trust to utilize certain tax advantages under section 645. When the executor (if there is one), or trustee, of your estate make a Section 645 election, the trust is treated, for income tax purposes, as part of the decedent's estate for all tax years of the estate...