How Do Trusts Get Taxed? Basics of Trust Taxation & Can They Pay No Tax?

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Author: Michael Rosmer

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[OffshoreCitizen]

To get personalized advice book a call with Michael:

[JorgeMartinez-ympp]

Definitely would have got a clearer understanding had we not used the Spanish law scenario.

[joethong]

would love to see a comparison between trusts and foundations and which ones are better for different situations.

[seeingyouontube]

My daughter inherited the majority shares in her dad’s US privately held company. She is the sole heir of his assets and has hired a CPA to do an IRS 706. She has little cash flow so I don’t understand how the IRS expects her to pay taxes on the value of his company. Your discussion about deferred taxes or if the business already paid tax on its assets was enlightening. She’ll learn soon the bottom line if her accountant and estate attorney can preserve her inheritance!

[MrArtVein]

It's also important to note- something I had to catch in my studies. A trust and trust fund are different. A trust is an agreement or relationship. A trust fund is a legal entity

[william_]

May you do a video on trust tax residency? Especially if grantor hops from country to country and grantor tax residency changes

[ipro]

Either the grantor or the beneficiary will pay the taxes. Taxes can be shared between the two. For example, the grantor pays taxes before depositing the funds and the beneficiary pays taxes for capital gains if trust funds grow.

[creativemanifestation]

Greetings Chief. I thought you were going to miss the jurisdiction distinctions. Many don't address this, don't want to, or don't know about it. You are great.

[michaelgreen]

Just studying up on trusts.
This is very helpful

[timemanagementisinvesting]

I often hear recommendations for real estate and securities to be placed in trust to avoid or minimize taxation, but it seems the flip side would be not being able to write off real estate expenses or tax loss harvest security losses. It's an unpopular view, but I avoid 401Ks and opt for a combo of maintaining a taxable securities account and a Roth. My rentals are individual LLCs. I've been on the fence regarding trusts, but will follow your channel for more insights.

[bluelvn]

would reccomend when you are doing the examples, I'm sure flow chart of some sort will help, they can even be ona a whiteboard

[marioclaudiojr.]

How did Nelson Rockefeller earn $140 million in one year and not pay one red cent in taxes?

[emanueljennings]

NOTE: THERE ARE STATUORY & NON-STATUORY OR CONTRACTUAL TRUSTS KNOW & LEARN THE DIFFERENCE !!!

[lunamorris]

I like your video presentation. It is informative too, at the same time. Thanks a lot for your guidance!

[Koksumtoh]

Trust as it is is very complicated, you try to expain it putting in different senarios and worse you add in Spain and America system. Try a smaller focal point. Or talk about Spain and america seperately. Dont waste clients' time be concise.

[anonymwho]

Still a bit confused....say my wealthy father died leaves me ten to 20 million. It's taxed upon transfer to me. If I put that money in a trust and set up a spendthrift is it tax again every year or month I receive a distribution?

[kyler]

So if I have an offshore trust(panama) with a charity as beneficiary (but not paid out right away) meaning the assets income is accumulating for so many years(say 20 years) if I managed the investing accounts if the Trust from Canada would the greedy government ask for tax ?

[kissme]

Can you recommend a video for someone who wants to live overseas for more than 6 months a year with only a PO Box or Mail Etc address in the USA ? Would this be a potential nightmare for my accountant ? Thanks

[ashwinaluchetti]

Are beneficiaries of a Jersey islands discretionary trust responsible for paying taxes on earnings of the trust assets? The beneficiaries have no control over the trust as it is discretionary so does the IRS go after the individuals?

[Harpadzo]

Interesting. As a Living Trust is not public or filed anywhere, unless one is reporting income into the trust, how does the IRS even know it exists? If you have an LLC, there will be tax forms to file and theoretically tax liabilities are handled. Or, if you are earning creative Royalties on books, songs or movies, etc., it is income and will be taxed. So other than a lump of Assets contained within the Trust for the beneficiaries upon death of the Grantor, where does the IRS learn about the Trust? I am a bit confused about this aspect of a Revocable Living Trust, as you can tell.