Hi bogleheads!
I have two accounts with my brokerage company. My primary brokerage and an irrevocable trust which I am trustee and beneficiary of. I am trying to minimize my tax burden and could use some advice and info on what to do with dividends/income from the trust investments.
1. Do I avoid trust taxes and pay personal income tax rates if I withdraw the income, transfer it to my bank account, and then invest it in my personal brokerage? Or is this a waste of time and I may as well reinvest the money in the trust account.
2. Is there another way to avoid trust taxes, or would the most tax advantaged move be to transfer all of my assets out of the trust and into my personal brokerage? If I do that, the money loses protections in a divorce or lawsuit. Are there any other disadvantages?
I have two accounts with my brokerage company. My primary brokerage and an irrevocable trust which I am trustee and beneficiary of. I am trying to minimize my tax burden and could use some advice and info on what to do with dividends/income from the trust investments.
1. Do I avoid trust taxes and pay personal income tax rates if I withdraw the income, transfer it to my bank account, and then invest it in my personal brokerage? Or is this a waste of time and I may as well reinvest the money in the trust account.
2. Is there another way to avoid trust taxes, or would the most tax advantaged move be to transfer all of my assets out of the trust and into my personal brokerage? If I do that, the money loses protections in a divorce or lawsuit. Are there any other disadvantages?
Statistics: Posted by bogletron — Thu Dec 28, 2023 11:17 am — Replies 0 — Views 38