Living trusts may provide tax benefits
Article Abstract:
A living trust can provide tax benefits, operational flexibility, financial confidentiality and significant savings on probate costs. The advantages that can be derived from the transfer of assets to a living trust depends on the particular situation of the grantor and on whether the living trusts selected are revocable or irrevocable. Assets transferred to a living trust are managed by a trustee designated by the grantor. Typically, the trustee is a financial professional working on behalf of the grantor's adviser. Occasionally, however, the trustee is a family member or a close friend of the grantor. The role of the trustee is to manage the trust during the duration of the grantor's life, after which management or distribution of the living trust passes on to a designated successor trustee who operates the trust according to the terms specified for remaining beneficiaries.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
IRS explains medical savings accounts
Article Abstract:
The IRS has issued Notice 96-53, 1996-51 IRB 8 to explain medical savings accounts (MSAs). Under these accounts, certain medical costs not paid or reimbursed under a high-deductible health plan can be satisfied on a pre-tax basis starting Jan. 1, 1997. Like individual retirement accounts, MSAs are established as a tax-exempt trust or custodial account with a qualified trustee or custodian. Aside from being portable, they do not require the approval of the IRS. MSAs may be created by any employee working for a company with an average of 50 or less employees during one of the two preceding years, and which maintains an individual or family 'high-deductible health plan.' MSA contributions must be made in cash and those made by unqualified individuals or that exceed the prescribed limits are non-deductible.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Investment and mortgage interest still provide tax benefits despite increased restrictions. Distributions through related corporations may still produce unfavorable results
- Abstracts: Filling the GAAP for small companies. Implementing FRS 8: some practical aspects
- Abstracts: Lotus Notes allows many practitioners to share documents. Software programs help you keep track of due dates. Electronic services can accelerate and simplify tax research
- Abstracts: Stock options can furnish tax benefits even in corporate takeovers, but timing is crucial
- Abstracts: IRS issues final rules on grantor-trust reporting. Estate can be ended by IRS if it continues too long