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Subject:  Re: Taxes for Family Trust Date:  5/12/2017  12:43 PM
Author:  inparadise Number:  125902 of 132493

Who pays the taxes on the trust income is something that might be addressed in the trust document. Its possible for the trust to say that the trust will pay the taxes. That's often not a good idea, though, because the trust gets into higher tax brackets much faster than an individual will. The trust cannot force a beneficiary to pay the tax without actually giving the income to the beneficiary.

Though I have not read all 3" of the trust, only reading the inch that is to be given out to the institutional fiduciary or CPA the trust requires to be co-trustee, I have seen nothing on taxes and I would think the managing institution would need that info.

As I said we are highly unlikely to ever benefit from the trust and are already battling a high tax bracket even in retirement given all the traditional IRAs we have to deal with. I have zero desire to pay taxes on this trust. I have zero desire to tap this trust unless it is to close it out so we have one less complication to deal with.

So far we are looking at 1% of the balance each year for the financial planner, 0.75% for the corporate fiduciary, and now taxes on top for money we will never get to use. I wonder how many other ways MIL managed to screw her kids over with what is really not a lot of money.

hoping to reduce the 0.75% by using a CPA instead of a bank but no idea how to find a good one
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