The Wall Street Journal article "How a Trust Can Cut Taxes" features Michael J. Puzo, Hemenway and Barnes partner and chair of the Private Client Group. The article discusses how, given the compressed tax rates on trusts, trustees may be able to reduce a family’s tax burden by increasing distributions to beneficiaries, who are often in a lower tax bracket than the trust itself.
Puzo, who frequently serves as a trustee, comments that he and his fellow trustees will consider shifting some trust income to individual beneficiaries, especially those in lower tax brackets, if a trust permits the move and a shift is otherwise in a family's interest.
To read the full article, click here.
