Thompson Coburn partner Steve Gorin recently appeared on a podcast hosted by the American College of Trust and Estate Counsel (ACTEC) on fiduciary income tax planning and how practitioners can use it to optimize financial outcomes.
Steve provided an overview of fiduciary income tax planning, questions for fiduciary income tax consideration, distributable net income, and capital gains and DNI.
He said, “After a trust or estate gets to about $15,000 or $16,000 of taxable income, it’s going to be in the highest bracket. And often a beneficiary may be in a much lower bracket. To get to the highest bracket tends to require somewhere, you know, several hundred thousand dollars’ worth of taxable income, and a lot of beneficiaries don’t have as much of that. So there may be some opportunities to push income out to beneficiaries so that they can be taxed at a lower rate than what the trust might have.”
Click here to listen to the full podcast.
