Comment on the following items relative to tax planning strategies of a fiduciary entity. To reduce taxes for a typical family, should income be shifted to a trust or from a trust? Why? To reduce overall taxes, should a high-income, wealthy beneficiary be assigned to the first or second tier of trust distributions? Why

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 11DQ
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Comment on the following items relative to tax planning strategies of a fiduciary entity.

  1. To reduce taxes for a typical family, should income be shifted to a trust or from a trust? Why?
  2. To reduce overall taxes, should a high-income, wealthy beneficiary be assigned to the first or second tier of trust distributions? Why?
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