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Category: Trusts

June 20, 2024

The Importance of Fiduciary Accounting in Estate Planning

Serving as the fiduciary of a trust or estate requires specialized knowledge, organizational skills, time and meticulous attention to financial details. Individuals and corporate entities who serve in this role are also legally bound to follow a series of basic principles governing the decisions of fiduciaries including an expectation to act with reasonable care (called the duty of care), acting solely on behalf of the beneficiaries of the trust or estate (the duty of loyalty) and remaining impartial in serving… Read more ›

June 18, 2024

What is a Grantor Trust? 

Many types of trusts are created with a similar goal in mind: to protect assets and the income they generate from a higher tax rate, creditors or other liabilities. A grantor trust is an example of a trust that lets the the holder (the grantor) protect the assets placed in trust by paying the tax liability on his/her personal 1040 return rather than deferring the tax liability to the trust and thereby cutting the amount ultimately paid out to the… Read more ›

March 19, 2024

Trusts for S Corporation Interests: QSSTs and ESBTs 

Trusts can be an integral part of estate planning, offering tax advantages and giving individuals the ability to distribute their assets according to their desires. An individual who holds shares in an S corporation and who is considering gifting stock as part of planning their estate may wish to carefully consider the types of trusts available. In our article, Trust Types As An S Corporation Shareholder, we discussed several types of trusts that can serve as an S corporation shareholder…. Read more ›

March 18, 2024

Trust Types as an S Corporation Shareholder 

An S corporation is a business structure that allows the passage of taxable income, losses, credits and deductions to shareholders, thereby preventing income from being exposed to the consequences of double taxation at the corporate and individual levels. Although an S corporation benefits from certain tax advantages, it also faces restrictions such as a limit on the number of shareholders – no more than 100. As part of estate planning, some individuals choose to take advantage of the availability of… Read more ›

March 13, 2024

10 Common Mistakes When Filing Your Taxes

Making a mistake while filing your taxes can lead to complications with the Internal Revenue Service (IRS). Some oversights or errors are easily fixed but others could have deeper consequences, impacting your refund, your tax liability or even lead to fines or an audit. While CBM always recommends working with a knowledgeable tax professional, you should always be mindful to avoid these common mistakes.  You may be surprised to know the most common mistakes with tax filings, as reported by… Read more ›

September 1, 2023

Everything You Wanted to Know About Living Trusts

A living trust is a popular consideration in many estate strategy conversations, but its appropriateness will depend upon your individual needs and objectives. What is a Living Trust? A living trust is created while you are alive and funded with the assets you choose to transfer into it. The trustee (typically you) has full power to manage these assets.1 It will also designate a beneficiary, or beneficiaries, much like a will, to whom the assets are structured to automatically pass… Read more ›

September 26, 2022

Encourage Legacy Gifts to Your Not-for-Profit

If your not-for-profit focuses most of its fundraising energy on donors who can contribute to your mission and programs now, you may have neglected legacy gifts. Such gifts represent a portion of wealthy donors’ estates that go to your organization on their death. Legacy gifts can help position your nonprofit for sustained growth well into the future. Let’s take a closer look at the hows and the whys. Mechanics of Giving The vast majority of legacy gifts are made through… Read more ›

May 16, 2022

Should You Diversify Your Investments with Rental Real Estate?

Many people invest in marketable securities, including stocks, bonds, money market funds and real estate investment trusts (REITs). But a less conventional investment option that’s historically paid off for many investors is purchasing a home or condo to rent out to third parties. This alternative may help diversify your existing portfolio and hedge against public market trends. With any investment, there are no guarantees of success, especially if you have a short time horizon. But rental properties may be a… Read more ›