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Respond to the following question in your textbook: Chapter 14

 

Respond to the following question in your textbook: Chapter 14 Question C:14-2: Amelia, a widow, is in the top marginal income tax bracket and has considerably more income than she can spend. She is considering creating a trust for the benefit of her adult son Jason but is reluctant to make it irrevocable, at least presently. If she funds a revocable trust that must distribute all of its income to Jason, will Jason be taxed on the income? How may this trust help reduce the size of Amelia’s gross estate? Participate in follow-up discussion by commenting on your classmates’ posts and suggest an alternative method for Amelia to reduce her taxable estate.

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