Trusts and Foundations

1041-FOrmHigh net worth individuals and their related entities require sophisticated business, taxation, and financial guidance.  These entities may include trusts and private foundations.

Private foundations are subject to extensive tax rules, while also enjoying many tax and other advantages.  Specific financial expertise and insight into the intricacies of private foundation laws is particularly important when considering increased scrutiny of tax exempt organizations.  Inadvertent violations of the tax laws that are unique to private foundations can be costly.  Despite the administrative and regulatory complexity of private foundations, foundations are a tremendously valuable tax-savings vehicle.  Some of the specific areas of financial guidance needed for effective decision-making include the following:

  • Conflicts of interest/ transactions with “disqualified persons”
  • Tax on net investment income – understanding the dual rate structure of the excise tax
  • Taxes on undisturbed income
  • Taxable expenditures
  • Taxes on jeopardizing investments and excess business holdings
  • Reporting Requirements

Family and charitable trusts can be a very effective vehicle for preservation of assets and wealth.  Like a foundation, they are generally created for the purpose of asset protection and succession planning. Unlike a foundation, a trust is and arrangement in which the trustee(s) enter into the arrangement in their own name, versus as a separate legal person set up like a company owning the assets. We help clients understand the tax implications and identify the appropriate avenue to meet their goals.  In determining how to manage family assets, there are various methods to consider including the following:

  • Charitable Lead Trusts
  • Charitable Remainder Trusts
  • Grantor Annuity Trusts
  • Personal Residence Trusts
  • Family Limited Partnerships
  • Bypass Trusts
  • Marital Deduction Trusts
  • Revocable Lifetime Trusts
  • Life Insurance Trusts

Taking into consideration the complex tax regulations and reporting requirements of trusts and foundations, HLB Gross Collin,. P.C. provides valuable expertise and advice.  As specialists in dealing with trust and private foundations, we guide our clients in determining the most effective charitable vehicle for their needs and then protect it from the inherent tax ramifications.  Our clients’ goals and objectives are at the forefront, and we are committed to helping them make the most of their financial success.