Larry Maddox, president of Horizon Advisors, was interviewed by Arden Dale for her Wall Street Journal article titled, “How A Trust Can Cut Taxes.”
The article discusses steps that trusts can take to save money with the advent of higher taxes introduced in last year’s tax act. In particular, trustees and financial advisers are aiming to lower their tax liability by increasing their distributions to beneficiaries, who are often in a lower tax bracket than the trust itself. Because of the higher rates, it may have a bigger tax impact for 2013 and the future than it has in the past. Further, it can be important for trustees to run the numbers early in the new year because the Internal Revenue Service allows trusts and beneficiaries to count any distribution made in the first 65 days of the year as income for the prior tax year. In order to qualify for this treatment for 2013, distributions must be made by March 5, 2014.
The article appeared in the print edition of the Journal on Saturday, February 1, 2014 and you can access the original article here.