Family Trusts – Killer IRS Tax Relief
Another effective way of shifting income from a high-bracket taxpayer to a low bracket taxpayer is to transfer assets or property to your family members or dependents.
Family Trusts Advantages
The advantage of this type of investment income shelter is that the amount of income you move in your family members’ name (distributed from the trust) is taxable at their low tax rate.The family trust represents a great tax benefit for parents with disabled children.If the distributions are made to other than family members, or to dependents who do not qualify for lower tax rates on their income earned on the investments, the higher marginal tax rate will apply to that income.