How rich people avoid paying taxes - Dr Boyce Watkins

Trusts are a popular way to minimize capital gains taxes. A trust is a legal arrangement in which one or more persons, called trustees, manage assets for the benefit of another person, known as the beneficiary. Trusts can be used to minimize capital gains taxes in several ways.

First, trusts can be used to transfer ownership of assets from one person to another. This allows the transferor to avoid paying capital gains taxes on the assets. Trusts can also be used to spread out the tax burden over multiple beneficiaries. This allows the beneficiaries to pay less in taxes than if the assets were held by only one beneficiary.

Trusts can also be used to minimize capital gains taxes by taking advantage of tax deductions. For example, a trust can be used to make charitable donations, which can reduce capital gains taxes. Trusts can also be used to invest in tax-deferred investments such as annuities, which can reduce capital gains taxes.

Finally, trusts can be used to pass assets to heirs with minimal capital gains taxes. By setting up a trust, the trustor can transfer assets to the trust and the beneficiaries can receive the assets with little or no capital gains taxes. This is especially beneficial if the trustor is in a higher tax bracket than the beneficiaries.

In conclusion, trusts are a popular way to minimize capital gains taxes. Trusts can be used to transfer ownership of assets, spread out the tax burden, take advantage of tax deductions, and pass assets to heirs with minimal capital gains taxes. By using a trust, individuals can reduce their capital gains taxes and save money.

[jameswest]

Interesting. It's amazing how capital gains and a trust works. Maan...that's crazy 🤪

[teegee]

What type of trust is it where you wouldn't have to pay capital gains?

[cpcCA]

Would have been better if it came from you. Click bait