Fundamentals of Trust Tax Law
Courtesy of Mitchell Port of the California Tax Attorney Blog comes a nice Q & A from the IRS that addresses many of the fundamentals of trust law and trust taxation. Like Mitchell, I believe that any good attorney practicing in this area knows the answers to these questions. Nonetheless, I think that the information is of use to most non-trusts and estates practitioners, as well as our clients, and I urge you to take a look at the IRS publication to which Mitchell links in the below post:
The IRS published a Q&A about basic trust law and trust taxation which is quite good. Any qualified California tax attorney worth his salt knows this material. Here are the "Qs" and for the "As" click here.
Basic Trust Law
Q: What is a trust?
Q: Who is a grantor of a trust?
Q: What is a trustee/fiduciary?
Q: What is a beneficiary?
Q: What is a simple trust?
Q: What is a complex trust?
Q: What is a grantor trust?
Q: What are irrevocable/revocable trusts?
Q: What are testamentary and Inter Vivos trusts?
Trust Taxation Questions
Q: IRS instructions for Form 1041 and Schedules A, B, D, G, I, J and K-1 provide general tax information and guidance for completing Form 1041. What law controls trust taxation?
Q: Do trusts have a requirement to file federal income tax returns?
Q: How does a trust compute its income tax liability?
Q: I have been told that I can assign income to a trust and I will not be taxed on that income. Is this true?
Q: May a trust deduct contributions to a charity?
Q: Will I owe Federal Gift Taxes on property contributed to a trust?
Q. The information presented by the promoter sounded legitimate. Now I have concerns regarding this promotion. Who do I contact to report information on the promotion and promoter?
Source: California Tax Attorney Blog
