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Michigan has a flat income tax across the state, but some cities do charge an additional rate. Sales taxes are relatively low for the region, and there are no additional local sales taxes.
Continue reading → The post How to Protect Trust Assets From a Beneficiary's Divorce appeared first on SmartAsset Blog. Trusts can be a useful estate planning tool for passing on wealth to heirs ...
The U.S. federal estate and gift tax marital deduction is only available if the surviving spouse is a U.S. citizen. For a surviving spouse who is not a U.S. citizen, a bequest through a Qualified Domestic Trust defers estate tax until the principal is distributed by the trustee, a U.S. citizen or corporation who also withholds the estate tax.
Such trusts that can run for an unlimited term (i.e., those not limited by state laws against perpetuities), are often referred to as dynasty trusts. Using the generation-skipping tax exemption in this manner offers two important advantages: The trust will escape all transfer taxes when the children die and will pass tax-free to the grandchildren.
Dealing with trusts and their tax implications can seem like a labyrinth of legal terms and financial jargon. Trust distributions might be taxable, with the tax liability potentially varying based ...
Fiduciary tax law is both federal (see the Internal Revenue Code) and state. For Federal income tax purposes in the United States, there are several kinds of trusts: grantor trusts whose tax consequences flow directly to the settlor's Form 1040 (U.S. Individual Income Tax Return) and state return, simple trusts in which all the income created ...
A residence trust is another form of irrevocable trust because only irrevocable trusts can shield assets from estate taxes. Here, you put property such as a home into the trust’s name.
The current rule is that for beneficiaries under 19 (under 24 if a student), the first $1,050 of unearned income is tax-free, the second $1,050 is taxed at the minor's rate (typically 12%), and the amount over $2,100 is taxed at the ordinary and capital gains rates applicable to trusts and estates. UGMA and UTMA accounts can invest in the stock ...