Understanding fiduciary income taxation – the taxation of grantor and non-grantor trusts, complex and simple trusts – is essential to trust planning. It impacts the type of trust chosen, how it’s structured and administered. Recently changes to federal tax law have added to the complexity of fiduciary income taxation. The tax treatment of trust income and accounting for distributions and expenses varies depending on the type of trust involved and how “Distributable Net Income” is allocated. The 3.8% on distributable net income adds a significant planning consideration when you advise trusts. This program will provide you with a real-world guide to the essential rules, timeframes, planning techniques and traps of the taxation of trusts.
· Fiduciary income taxation framework and rules for estate and trust planners
· How fiduciary and income tax planning differ from each other
· Planning for fiduciary taxation v. planning for individual and corporate tax purposes
· Types of trusts – simple, complex, grantor – and differing tax rules for each
· Treatment of “Distributable Net Income,” including impact of 3.8% tax
· Understanding “Trust Accounting Income,” and impact of Prudent Investor Rule
Jeremiah W. Doyle, IV – BNY Mellon Wealth Management – Boston