You do pay taxes if you set up a trust fund for someone. Depending on the type of trust, the money can be sheltered in some tax free forms but in general the person receiving the trust fund will eventually pay taxes even on those types of shelters.
Depending on where someone lives depends on the need to pay taxes on any inheritance they get from a living trust. The beneficiary of an estate from inheritance will need to pay taxes to take possession of assets.
Yes the income from the trust is taxable income to the owner of the trust or to the beneficiaries of the trust. Some one will have to pay income taxes on the income from the trust.
If you are an individual who receives the life insurance proceeds, you may not have to pay any federal income taxes on the benefits. If the life insurance policy names a trust as beneficiary, the trust may be subject to estate taxes.
If the annuity is a non qualified tax deferred annuity (an annuity that taxes were paid on the money before they were placed into the annuity) you will pay taxes on any interest growth when it is removed from the annuity. If the annuity is a qualified annuity (no taxes were paid prior to placing the fund into the annuity) you will pay taxes on all withdrawals from the annuity.
Has to...having the right to do so is what is required...you can't get tax deferral by not acting...it's in your controll - just like in a bank.Income beneficary is responsible for taxes distirbuted whether received or not.Also beenficary is responsible for k-1 related issued by trust.Its not a right, but a legal obligation...a 'right' is kinda the wrong wayh to look at this.In my own case, the trustee forgot to pay taxes on the trust, while I didnt forget to pay taxes on my distributions.however, if given a k-1 its often cheaper for me to pay taxes on the k-1 income than for the trust to do so.
If you derive income from a trust fund then you must declare that income on your tax return.
Depending on where someone lives depends on the need to pay taxes on any inheritance they get from a living trust. The beneficiary of an estate from inheritance will need to pay taxes to take possession of assets.
We pay taxes to fund government activities.
A life insurance policy is an excellent way to fund a trust. Any way of placing necessary funds into the trust are acceptable. If you have cash and wish to fund it with cash this is fine. Life insurance is a good way to fund a trust because you can pay premiums and be assured that the money will be there when you die to fund a trust that you want to set up for someone.
It looks to me like you will actually pay income taxes on a trust fund, not earn interest. However, I would consult a reputable CPA, since you definitely don't want to skip paying taxes, as the IRS is a formidable debt collector.
The money in the trust fund is invested and some of the income is used to pay future benefits. As a result, the net value of the fund increases over time.
Taxes were created to fund the military and create jobs within the government. Revenue from state sales taxes pay for jobs within the state, property taxes pay for public education, and federal taxes pay for the military and those employed by the federal government.
Any Federal Taxes funds the Active Duty and Reserve and any State taxes fund that States National Guard. So all who pay taxes technically pay or fund the US Military, just as you would fund schools, road repairs or construction, parks and wildlife, bailouts, health care reforms, welfare, Medicare/Medicaid and many others. All soldiers pay taxes so they themselves are paying for themselves.
see The Coogan Act-1939
you dont
Yes the income from the trust is taxable income to the owner of the trust or to the beneficiaries of the trust. Some one will have to pay income taxes on the income from the trust.
If you are an individual who receives the life insurance proceeds, you may not have to pay any federal income taxes on the benefits. If the life insurance policy names a trust as beneficiary, the trust may be subject to estate taxes.