Bloomberg publishes Steve Gorin article on taxing trust income
November 10, 2017
Bloomberg BNA’s Estates, Gifts & Trusts Journal has published Steve Gorin’s latest article on trust income.
“Taxing a Trust’s Income: When Distributions Are Surprisingly Not the Key” explores in depth how a trust’s income is usually divided between the trust and beneficiaries, with the beneficiaries taxed on the income distributed to them.
Steve notes that sometimes it’s useful:
- to tax the beneficiaries on all of the trust’s income (including capital gains), regardless of distributions, or
- to tax the trust on all of its income, even if its income is distributed to the beneficiaries.
Steve also explains how to vary from the usual rules of allocating income between the trust and beneficiaries to achieve these results, exploring the nuances and pitfalls, strategizing for not only marketable securities but also business interests.
Read more here.