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Income beneficiary

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Income beneficiary
One who receives income from a trust.


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In this situation, the trustee should work closely with the tax adviser to determine how much cash to withhold from the trust's income beneficiary in order to pay this tax.
For instance, principal payments on a mortgage secured by the rental real estate and capital improvement expenses for the real estate are principal charges; (3) thus, the income beneficiary would receive the rental income without reductions for these expenses.
Set up a trust: The income beneficiary does not actually own the assets, the trust does, so the value of the trust assets isn't considered for estate tax purposes.
 
 
 
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