Some trust are used solely for probate avoidance or income tax savings. The basic types of...

Some trust are used solely for probate avoidance or income tax savings. The basic types of Trust breaks down into "living" Trust and "Testamentary" Trust: Discuss the elements of a Trust and the Tax implications which has made it a very popular option in Estate Planning. Please be very detailed in your response.

Expert Solution

Trust craetes a strong foundation in all relationships, whether business or personel in nature.

There are 4 types of trust elements

1) Competence

2) Reliability

3) Integrity

4) Communication

1) Competence: A collaborative relationship is doomed if there is a gross mismatch of skills and experience that is brought to the table. It will become very difficult for the other person to gain trust in them and belive that they are a valuable addition to the collabration

2) Reliability: The important in all relationships, reliability may play an even bigger roe in collabrative relationships. Without having confidence that everyone is carrying his or her own weight, it can be a challenge to maintain a collabration

3) Integrity: Are the collabration if there was a risk that someone was going to swoop in, gather up all of the work.

4) Communication: Is the most important of the trust. process of communication are relation between two parties of the trust. Each side of collabration has to communicate often clearly and honestly in oredr to develop mutual trust and respect. Without communication, there can't be a metting of the minds.

ekkarill92 answered 1 year ago

Tax Planning Discuss the differences between tax planning, tax avoidance and tax fraud. What are some...

Tax Planning Discuss the differences between tax planning, tax avoidance and tax fraud. What are some easy ways that a taxpayer can take advantage of tax deductions for/from AGI?

Define tax avoidance and tax evasion. What are some examples of each? Post your response in...

Define tax avoidance and tax evasion. What are some examples of each? Post your response in complete sentences here to receive full credit. Give details to support your answer.

ANTI-AVOIDANCE PROVISIONS Access and examine section 17 of the Income Tax Act of Jamaica, then perform...

ANTI-AVOIDANCE PROVISIONS Access and examine section 17 of the Income Tax Act of Jamaica, then perform the following tasks: 1. Distinguish between a fictitious transaction and an artificial transaction 2. Outline the anti-avoidance provisions as they relate to: • the transfer of property to a child, a trust, or a connected person • dealings in security

Name three income types to be included in Gross Income and three types of income tax...

Name three income types to be included in Gross Income and three types of income tax can be excluded from Gross Income. Please explain why you believe each item you have included in as excluded income qualifies for that designation.

(NZ Income Tax Act 2007) John's father, Ken has a trust, the Barbie Family Trust, which...

(NZ Income Tax Act 2007) John's father, Ken has a trust, the Barbie Family Trust, which owns several residential properties in Auckland. All the properties were bought in 2012. Ken is the settlor and trustee of the Barbie Family Trust and John and his sister are the beneficiaries of the trust. The trust is a complying trust and was set up 10 years ago. John and his friend Doreen own Milo Ltd (and only Doreen is an employee) with John...

Determination of Taxable Income and Tax Liability. A simple trust has the following receipts and expenditures...

Determination of Taxable Income and Tax Liability. A simple trust has the following receipts and expenditures for 2018. The trust instrument is silent with respect to capital gains, and state law concerning trust accounting income follows the Uniform Act. Assume the trustee’s fee is charged equally to income and to principal. Corporate bond interest $40,000 Tax-exempt interest 9,000 Long-term capital gain 5,000 Trustee’s fee 2,000 Distribution to beneficiary 48,000 a. What is the trust’s taxable income? b. What is the...

Counsell is a simple trust that correctly uses the calendar year for tax purposes. Its income...

Counsell is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Kathie, Lynn, Mark, and Norelle) are entitled to the trust’s annual accounting income in shares of one-fourth each. For the current calendar year, the trust has ordinary business income of $40,000, a long-term capital gain of $20,000 (allocable to corpus), and a trustee commission expense of $4,000 (allocable to corpus). a. How much income is each beneficiary entitled to receive? b. What is...

One argument in favor of universal basic income (UBI) and theEarned Income Tax Credit (EITC)...

One argument in favor of universal basic income (UBI) and the Earned Income Tax Credit (EITC) over minimum wage legislation is that a. all of the answers are correctb. none of the answers are correct since the minimum wage always increases total labor incomec. poverty is a social issue and society as a whole should bear the costs of its eliminationd. the disincentive (work-leisure) effects of the UBI and EITC is less than the disincentive (hiring) effects of the minimum wagee....

haig-simmons provides a definition of income which provides the basic construct of the personal income tax...

haig-simmons provides a definition of income which provides the basic construct of the personal income tax . Please explain that definition , discussing how taxable income is determined . The tax is progressive , not only as a result of the rate structure , but also because of the addition of certain credits . Please provide an example

Three taxes: Sales Tax, Property Tax, and Income Tax. Name three types of taxes and analyze...

Three taxes: Sales Tax, Property Tax, and Income Tax. Name three types of taxes and analyze the deadweight loss of each. Which of these taxes do you believe create the highest deadweight loss? Why? Why is deadweight loss disagreed on by experts? Explain.

Question