Tax Services:

Tax Planning and Compliance for Complex Trusts

Complex trusts can be good vehicles for tax planning, asset protection, succession planning and gifting. However, a variety of tax options are available to executors, trustees and beneficiaries that are not outlined in the Internal Revenue Code or Regulations. These options are not always apparent from judicial decisions and administrative rulings. Local law can also have an impact on decisions made. Sisterson is a firm that has years of experience with complex trusts, which enables our tax professionals to work side by side with counsel to consider the consequences of each course of action while considering the interaction of the separate bodies of law.

Our tax department is experienced in all areas pertaining to the taxation of complex trusts, including the following:

• Allocation of interest expense
• Allocations to beneficiaries in accordance with trust agreement
• Annual income tax planning
• Planning for Alternative Minimum Tax
• Calculation and minimization of estimated tax payments
• Calculation of distributable net income
• Below-market rate loans
• Charitable Trusts
• Determination of situs of trust
• Determination of fiduciary accounting income
• Discharge of indebtedness
• Grantors trust issues
• Installment sales
• Maximizing the benefit of net operating losses
• Planning for carryovers of net operating losses and loss limitations due to basis, at-risk limitations and passive activities
• Planning for timing of distributions to beneficiaries
• Maximizing “Section 29” credits and foreign tax credits
• Multi-state returns
• Tax benefit rules