Brian, yeah, this isn't THAT popular because it's not that common. I would certainly encourage you to consult a tax professional here. But yes, a Trust can avoid some capital gains tax. Trusts qualify for a capital gains tax discount, but there are some rules around this benefit. Namely, the Trust needs to have held the property for 1 year (just like a normal capital gains tax).
Taxation follows ownership, and a trust system can provide you
control without ownership. This will allow you to eliminate capital gains in an
efficient way without looking for the latest loophole or deferring the taxes. A
properly set up complex trust allows you to avoid capital gains tax and also
eliminates probate and inheritance taxes at the same time, while also
increasing your tax efficiency overall.
However, complex trusts are not an option for everyone. They can
be costly to set up and often have large liquidity requirements — in some cases
$5 million. This makes complex trusts a good fit for business owners who pay
more than $200,000 per year in taxes, high net worth individuals and family
offices that are looking for tax efficiencies, rather than for people who earn
W2 income. The system also has many rules and regulation that you must learn
to ensure you are fully compliant.
So, consult your tax professional.
