Understanding S Corporation Trusts
Understanding the Complexities of S Corporation Trusts
Dive into the world of S corporation trusts, exploring their eligibility, benefits, and potential pitfalls. Mark Kassens unpacks the three main trust types allowed as S corporation shareholders: Grantor Trusts, Qualified Subchapter S Trusts (QSSTs), and Electing Small Business Trusts (ESBTs).
The goals of an S Corporation Trust (SCT) are a bit nuanced and can vary depending on your specific situation and objectives. However, in general, there are two main purposes:
1. Estate Planning and Asset Protection:
- Continuity and Flexibility
- Creditor Protection
- Tax Minimization
2. Control and Beneficiary Protection:
- Controlled Distributions
- Disability and Dependency Support
- Family Harmony
Important Considerations:
- Complexity and Cost
- State-Specific Regulations
- Tax Implications
Overall, S Corporation Trusts can offer unique advantages for individuals with significant assets, including ownership stakes in S corporations, who want to achieve both effective estate planning and provide flexibility and control over their legacy. However, the complexity, cost, and potential tax implications necessitate careful consideration and professional guidance before making any decisions.
This video, the seventh in the series, explains S Corporation Trusts.
Video 7
S Corporation Trusts
We dive into the world of S corporation trusts, exploring their eligibility, benefits, and potential pitfalls. Mark Kassens unpacks the three main trust types allowed as S corporation shareholders: Grantor Trusts, Qualified Subchapter S Trusts (QSSTs), and Electing Small Business Trusts (ESBTs). By understanding the different types of S corporation trusts and their key considerations, you can make informed decisions about this potentially valuable tool for your business and estate planning needs.
Check out other articles in this series:
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Estate, Trust, and Succession Planning Services
Mark’s background in tax enables him to provide extensive services to the firm’s clients in the areas of estate and retirement planning, and business succession consulting.