Tax requirements for trusts vary depending on the type of trust. While some trusts are designed to accomplish tax planning goals, the income taxation of the trust itself should also be considered when determining whether and what type of trust to set up for one's beneficiaries.
Select tax thresholds adjust annually, prompting many analysts to predict the anticipated changes for the coming year. The forecasted changes for 2017 offer favorable implications for many taxpayers.
The U.S. Senate Finance Committee recently proposed increasing the age for Required Minimum Distributions (RMDs). The proposal, Retirement Improvements and Savings Enhancements (RISE) Bill, was submitted in early September 2016 and, if passed, would affect RMDs for all retirement plan accounts and provide alternative terms for account owners with balances of less than $150,000 per account.
Recently, Democratic Presidential nominee Hillary Clinton significantly modified her estate tax proposal. Clinton's campaign announced a revised proposal including a 65 percent maximum tax rate on estates, which is 20 percent higher than the provisions of her original proposal.