Adult Children

Parents wishing to give their adult child tax advantages that the child could not otherwise enjoy should consider including a trust in their Wills. A testamentary trust is treated as a separate taxpayer and the income earned by the trust is taxed at graduated rates (the more the trust earns, the more it is taxed up to a certain limit).   (more…)

The world of trusts is fascinating, if not somewhat enigmatic.  Trusts, in general, are an important part of estate planning because of the beneficial tax treatment of testamentary (arising as the result of a death) trusts. However, trusts are used by parents and others for a variety of specific purposes besides tax planning. Over the next few weeks, I will offer a brief introduction to some of the ways that trusts are used to protect a child’s inheritance. (more…)