Tax Tips for CPA’s Reviews of Trusts

Tax Tips for CPA’s Reviews of Trusts

By: Martin M. Shenkman, CPA, MBA, JD

Law Made Easy Press

Estate Video
Tax Tips for CPA's Reviews of Trusts

Martin M. Shenkman, P.C.
Law Offices of Martin M. Shenkman, P.C.
4 Forest Avenue
Paramus, New Jersey 07652

Tax Tips for CPA's Reviews of Trusts

Common trusts are made for children and minors and trusts are made for grandchildren. Insurance trusts are established at many different random intervals. There are many issues such as income tax that could be an issue. Addressing them could be a tremendous benefit to your business as an advisor. Here are some tips for you to know on the issues of taxes:

1. Try to ease a child into trust benefits created by the family.

- Doing this has a great benefit to a child because they will become use to the benefits.

2. You must see how a trust fits into the picture of the client

- Knowing your client is crucial to making an effective policy.

3. 529 plans are very beneficial in the issue of trusts.

- The money is considered still under parent's estate until a certain time to which it is of great benefit.

- Another benefit is that you are allowed to put in much more money then normal.

- Control and Estate tax are only real issues to deal with.

4. A uniform transfer to minor's have many benefits including that the child is in a lower tax bracket.

5. Someone has to continually monitor the trust.

- Doing so ensures it is not being misused and also is under the same guidelines it always has been.

6. Always address exactly what the trust has established.

- Make a projection and understand what really needs to be done to establish an effective trust.

7. Understand your client's needs.

8. Make sure you clearly understand the grantor trust standing.

- This means that on a trust either you will be paying taxes on the trust or your child for whom the trust is for will be paying out the entirety of their trust.

The above is a summary of a taped lecture by Martin M. Shenkman, Esq. an estate planner in Paramus, New Jersey. Listen to the video clip of this segment on

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