Assets are categorized as Inside or Outside the taxable estate on the Ownership Balance Sheet based on the below criteria:
For individual and joint ownership: If the owner is the client, assets are categorized as inside the taxable estate. Otherwise, any other individual or joint owner of assets are considered as outside the taxable estate.
For Revocable Trusts: the system will check if any trust creators listed in the Trust Card are the client. If the trust creator is the client, the Revocable Trust is categorized as inside the taxable estate. Otherwise, the Revocable Trust is categorized as outside the taxable estate.
For Irrevocable Trusts: the toggle selection within the Trust Card determines whether the Trust is considered inside our outside the taxable estate.
For Entities:
If the entity is owned entirely by the client, the Entity is displayed as inside the taxable estate.
If the entity is owned partially by the client and a third-party, the value of the Entity owned by the client is displayed as inside the taxable estate and the value owned by the third party is displayed as outside the taxable estate.
If the entity is owned by a Trust, it is displayed as inside or outside the taxable estate based on whether the Trust is considered taxable or not.
The following are always considered as outside the taxable estate:
529 Education Accounts
Donor Advised Funds
Private Foundations
If ownership is unspecified on an asset, it defaults to be considered outside the taxable estate of the client and is not considered in any calculations.