How Are Trusts Taxed?
The answer is it really depends on what type of trust it is.
I discuss different situations on how taxes are done and be saved on trust.
This is one of the things I teach at:
We will cover everything from soup to nuts! I hope to see you soon. Yeah, baby!
Hi! It’s Lou Brown. I’ve been asked. How are trusts taxed? Well, that’s a good question. And the answer is, it really depends on what kind of trust it is. If it is a Simple Trust under IRS code 671 through 678, meaning that it’s a flow through trust. Meaning that it flows through to the tax return of the beneficiary. So if you are the beneficiary of the trust, then it flows through to your tax return and you’re taxed as you normally would be. There’s a different kind of trust called, I call it the Elite Trust. It’s an Irrevocable Complex Trust when that type of trust is established, then it has its own tax return for whatever happens inside that trust. So if there is income to that trust whatever’s happening inside that trust, that’s what’s taxed. And by the way, you can set it up on a deferral basis.
So as a result, much of the taxation can be deferred until a later date. And it can be designed so that it passes from generation to generation. So it moves that tax bill into the future, and it can help you to retain a lot of cash that can be used to acquire more assets. Obviously, if you’re taking out anywhere from 20% to 50%, depending on what state you’re in, in taxation, and it’s going to governmental bodies, that’s 50% money that you didn’t have to invest that could pay you for the rest of your life. So it’s very valuable to learn that taxes can be saved. And I say that the secrets are hidden out in the open. The tax code has many, many, many different benefits in it. Once you’re aware of those things, then you can design your life around that tax code and literally put yourself in a position to zero out your taxes. Very valuable thing.
That’s one of the things that we’re going to be teaching at my upcoming event. It’s called Maximum Asset Shield. MaximumAssetShield.com You can learn more about my upcoming four day event, where we’re going to cover everything from soup to nuts. Literally, you bring a deed to class. You bring a title to class. You’re going to learn how to actually transfer properties from your name into the trust name, so that you can have it reviewed by an attorney. You’ve got all of the ducks in a row, so to speak. You had all the thought patterns of who’s going to get what, who’s going to be the trustee. We’re going to go over all the issues related to those things. Who to choose as trustee? How to name the trust? What you’re going to do with the trust? How you’re going to set up your beneficiaries? What assets are going to be in the trust? How do you transfer those assets to the trust? All of those issues and taxation. We’re going to definitely have a master CPA at the class who’s in real estate who understands exactly what we’re up to, what to do, how to do it. It’s amazing. And it’s coming up soon. So I encourage you to look at MaximumAssetShield.com for the latest dates. And definitely there’s also a home study course, if you want to go that route. So I’m looking forward to seeing you soon. Yeah, baby!