Trusts, Obamacare, and the New Tax Act

As pointed out in the article in Forbes, to which I’ve linked in the title of this post, both the 3.8% surcharge on investment income required by Obamacare and the tax increases on capital gains from the recent tax act impact Trusts at a much lower point than individuals.  If you are a Trustee, you will now need to be even more intentional about income tax planning with your beneficiaries. Also, since these tax costs encourage Trustees to distribute more to current beneficiaries, Trustees will need to be more intentional about protecting the interests of future beneficiaries.