Uses of Trusts in Estate Planning - Stewart McKelvey
Uses of Trusts in Estate Planning - Stewart McKelvey
Uses of Trusts in Estate Planning - Stewart McKelvey
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Taxation <strong>of</strong> <strong>Trusts</strong> (Cont’d)<br />
• Income paid or payable to beneficiaries is<br />
taxed <strong>in</strong> the hands <strong>of</strong> those beneficiaries<br />
• The trust receives a deduction for all<br />
amounts paid or made payable to the<br />
beneficiaries<br />
• If the trust is revocable, or if the settlor<br />
reta<strong>in</strong>s significant control over the trust<br />
assets, all <strong>in</strong>come (<strong>in</strong>clud<strong>in</strong>g capital ga<strong>in</strong>s)<br />
is taxed <strong>in</strong> the hands <strong>of</strong> the settlor