This article discusses some of the methods that clients can use to minimize the impact that various taxes have on trusts. There are many different types of trusts so a one size fits all approach is never the right answer. It is important for clients and financial planners to consider a wide range of choices. Clients should consider the long-term impact of trusts that they are currently implementing. A prudent client should think about the different options for dealing with internal trust taxation. This article discusses some of the benefits that certain types of annuities can have on tax planning when dealing with trusts. Funded Credit Shelter Trusts (CSTs) are discussed in this article as an example of one of the many types of tools clients can consider using.
See Kathleen Cassidy and Steve Litner, Minimize the Tax Drag on Trusts, Wealth Management, September 15, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
