Tag: Trusts
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General Anti Avoidance Rule
General Anti-avoidance Rule The general anti-avoidance rule (“GAAR”) in the taxation system The GAAR allows Tax Authorities to override the tax consequences that would otherwise apply in a given situation, if those tax consequences are the product of tax avoidance. A General Anti-avoidance Rule can perform a useful role in the tax system, as a…
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Trust Taxation
Taxation of Trusts This entry try to offer a comprehensive overview of how the tax laws apply to settlors, trustees and beneficiaries. In most countries, Trustees must comply with tax administrative obligations. The extent of these obligations will depend on the country and the nature of the trust’s assets. Record keeping In general, a trustee…
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Charitable Trusts
Charitable Trusts Administration of Charitable Trusts Charitable Trusts in New Zealand New Zealand has 1 registered charity for every 176 people. By contrast this figure is 1 for every 300 in the United States, 1 for every 344 in the United Kingdom, 1 for every 435 in Canada and in Australia 1 for every 470…
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Trust Registration
Registration of Trust Introduction In New Zealand and in some countries there is no register for standard inter vivos or testamentary trusts. In respect of incorporated charitable trust boards, registration is the process that establishes such a trust board as a corporate body. As trusts otherwise do not have legal personality, there is not the…
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Outline of Trust and Estates
Outline of Trust and Estates Note: this is based in United States law I. POLICY AND INTRODUCTION A. Dead Hand Control 1. Controlling consideration in determining meaning of a donative document is donor’s intention 2. Courts cannot consider wisdom, fairness, or reasonableness of donation 3. Courts can only bar donations if they are prohibited or…
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What is a Section 645 election?
What is a Section 645 election? Under Section 645, if both the executor (if any) of an estate and the trustee of a qualified revocable trust (“QRT” ) elect the treatment provided for in Section 645, the trust is taxed for income tax purposes as part of the estate (and not as a separate trust)…
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Should Trusts file income tax returns to the IRS?
Should Trusts file income tax returns to the IRS? Trusts must file a Form 1041, U.S. Income Tax Return for Estates and Trusts, for each taxable year where the trust has $600 in income or the trust has a non-resident alien as a beneficiary. However, if the trust is classified as a grantor trust, it…