Tax Issues Related to Trusts in Long Island
Is a legal trust vulnerable to taxation?
A trust is a legal arrangement that is made when an individual or entity is made responsible for the control of property such as real estate and other assets without being the owner. Trusts are generally created to guarantee that an individual's desires will be maintained with respect to the distribution of any property included in the trust, or for the purposes of lowering overall estate taxes, because trusts are not subject to estate tax. There are a variety of ways that a trust can be abused to avoid taxes by hiding property or income, and it is a good idea to discuss your situation with a Long Island tax attorney who is well-versed in tax issues related to trust in order to avoid a criminal tax investigation by the IRS.
Trusts are very effective for reducing the impact of taxes in the transfer of real estate, assets or other property to a recipient. The many different ways in which a trust can reduce taxes and make the transition of property ownership easier are quite varied, and an ethically creative attorney may be able to provide a great deal of savings to clients by identifying which items qualify for a trust, and how those items can be detailed to minimize taxes that apply not only to a trust, but other areas such as estate tax.
Complete Support for Legal Trusts in Long Island
Blutter & Blutter is a reputable law firm composed of expert-level attorneys representing clients throughout Long Island. Arthur Blutter is a licensed New York attorney and certified public account and former professor of Accounting and Special Professor of Law at Hofstra University School of Law. Their firm has handled over 3,000 cases related to a wide range of tax issues, and they have provided consistent success by working closely with clients in order to fulfill their needs in the best possible way.
Contact a Long Island tax lawyer if you are interested in learning more about how taxes are applied to trusts, and how you can minimize the impact of taxes on a trust.