Sponsored By
Trusts & Estates logo

Game Change: Minimize Income Taxes Under the New RegimeGame Change: Minimize Income Taxes Under the New Regime

Strategies for estates, trusts and beneficiaries

5 Min Read
Wealth Management logo in a gray background | Wealth Management

New tax laws that took effect on Jan. 1, 2013 have complicated the already complex playing field of the income taxation of estates and trusts. Here are some of the strategies that fiduciaries can use to minimize income taxes under the new regime.

 

Distribute to Beneficiaries in Lower Income Tax Brackets

This year, the top tax rate on ordinary income increased from 35 percent to 39.6 percent, and the rate on long-term capital gains and qualified dividends increased from 15 percent to 20 percent.  Individuals reach the top ordinary income tax rate at income of $400,000 (or $450,000 if married filing jointly), whereas estates and trusts reach the top rate at income of just $11,950.  Therefore, if estate or trust income exceeds $11,950, distri...

Unlock All Access Premium Subscription

Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!

Already Subscribed?

About the Authors

Scott Goldberger

Scott Goldberger, J.D., is an estate and trust director in Kaufman, Rossin’s Boca Raton office. Kaufman, Rossin& Co. is one of the top CPA firms in the country and offers a wide variety of services for high-net worth individuals. Scott can be reached at [email protected].

John R. Anzivino

John R. Anzivino is the principal in charge of Kaufman, Rossin’s estate, trust and exempt organization practice. Kaufman, Rossin & Co. is one of the top CPA firms in the state and offers a wide variety of services for high-net worth individuals. John began working in the estate and trust field in 1972. He spent 7 years as a trust officer administering estates and trusts at Southeast Bank, 5 years in the tax department of Coopers and Lybrand and joined Kaufman Ross in 1984.

John earned his Master’s degree from the University of Miami. He has served as adjunct professor at the University of Miami Law School Masters in Taxation program and is a frequent lecturer for various professional groups. John is the founding president of the Partnership for Philanthropic Planning of Miami-Dade. He was the recipient of the 2001 Professional Advisor of the Year Award from the Planned Giving Council, and he is a Certified Public Accountant in Florida. John can be reached at [email protected]