A trust is a different kind of owner.

A trust is a different kind of owner.

It has its own accounting rules, its own income tax rules and its own estate tax consequences. Families too often treat trusts like their other entities.

Most of the owners of a family fund end up being trusts. The fund does not change because of it. What changes is how the family runs the trusts that own it. A trustee who understands tax is planning to reduce tax, not figuring out who owes it near a deadline.

This week’s article with Jeffrey Rosen, CPA, CGMA, MBA in the Frazier & Deeter Family Offices Series is “When the Owner of the Family Office Is a Non-Grantor Trust.”