Tax Planning for Trusts and Estates
Subchapter J of Chapter 1 of the Internal Revenue Code deals with the taxation of income of estates and trusts and their beneficiaries, and of income in respect of decedents. Special rules that only apply to trusts and estates are tax traps for the unwary and planning opportunities for the astute and learned. A fiduciary's main objective is to identify and avoid the tax traps to reduce liability exposure. During the presentation, Craig and Austin identified common tax traps and discussed options and implications of income tax planning for trusts, estates, and decedents.