Do you wish you could get the relationship between taxes and trusts explained? We’re here to help.
There are a number situations in which taxation of trusts can be confusing:
- You set up a revocable living trust. Do you have to file a tax return?
- Your trust became irrevocable — perhaps because of the death of the person (or one of the people) who set up the trust. Does the trustee have to file a tax return? Who pays the taxes?
- You are the beneficiary of a trust set up by someone else. Will money you receive from the trust be taxable income to you? How about property the trust distributes?
We can’t (and don’t try to) cover every variation, but in this week’s podcast episode we try to cover some of the key tax issues for trusts, trustees and beneficiaries.