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.
· Practical income allocation for simple, complex and grantor trusts
· Specific allocation rules for DNI – Tier System, Separate Share Rule, 65 Day Rule, specific bequests
· Charitable giving – tax treatment and practical impact
· Treatment of depreciation, administrative expenses, and allocation to income
· Trust terminations – capital loss carryover and excess deductions
Jeremiah W. Doyle, IV – BNY Mellon Wealth Management – Boston