Tax Tips for CPA’s Reviews of Trusts

Law Made Easy Press
www.shenkmaneducation.com

Estate Video
Tax Tips for CPA’s Reviews of Trusts

Martin M. Shenkman, P.C.
Law Offices of Martin M. Shenkman, P.C.
4 Forest Avenue
Paramus, New Jersey 07652

Tax Tips for CPA’s Reviews of Trusts

Common trusts are made for children and minors and trusts
are made for grandchildren. Insurance trusts are established at many different
random intervals. There are many issues such as income tax that could be an
issue. Addressing them could be a tremendous benefit to your business as an
advisor. Here are some tips for you to know on the issues of taxes:

1. Try to ease a child into trust benefits created by the
family.

– Doing this has a great benefit to a child because they
will become use to the benefits.

2. You must see how a trust fits into the picture of the
client

– Knowing your client is crucial to making an effective
policy.

3. 529 plans are very beneficial in the issue of
trusts.

– The money is considered still under parent’s estate
until a certain time to which it is of great benefit.

– Another benefit is that you are allowed to put in much
more money then normal.

– Control and Estate tax are only real issues to deal
with.

4. A uniform transfer to minor’s have many
benefits including that the child is in a lower tax bracket.

5. Someone has to continually monitor the trust.

– Doing so ensures it is not being misused and also
is under the same guidelines it always has been.

6. Always address exactly what the trust has
established.

– Make a projection and understand what really
needs to be done to establish an effective trust.

7. Understand your client’s needs.

8. Make sure you clearly understand the grantor trust
standing.

– This means that on a trust either you will be
paying taxes on the trust or your child for whom the trust is for will be
paying out the entirety of their trust.

The above is a summary of a taped lecture by Martin M.
Shenkman, Esq. an estate planner in Paramus, New Jersey. Listen to the video
clip of this segment on www.shenkmaneducation.com.

Disclaimer: Law Made Easy Press® provides practical and
legal, tax, estate and financial information for educational purposes only. The
goal is to help you best work with your professionals to save costs, and to
obtain better service and results as an informed consumer. There is no
assurance that the laws or sample documents are current, that the forms will
achieve the desired goal in all circumstances. Laws change frequently and vary
from location. Therefore, you should always consult with a local attorney,
accountant, or other expert.