Quote:
Originally Posted by MAXUM
In the simplest of terms...
These are legal maneuvers people are taking to legally protect an asset such as a piece of property or any asset of significant value. It does NOT free them from tax liability or make the taxes being paid any less. The trust, LLC, LLP, corporation or owner in whatever legal format it is defined must pay the same taxes as everyone else at the same rate. In fact most trusts are established simply for the purposes of augmenting a will to pass assets to beneficiaries avoiding any kind of probate or lawsuit claiming a right of ownership outside what is defined within the trust itself. Nothing nefarious here, in fact in today's overly litigious society it's almost a necessity.
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Not exactly, Corp and LLC tax rates have been lowered so if you're in a high tax bracket then you would pay less in Federal income taxes. The property tax bill would be the same but you can lower your overall tax liability with a Corp or LLC.