Video: Trusts Overview

In this lesson, Nick Palazzolo, CPA, dives into the foundational aspects of trusts, clarifying their reduced prominence in the current exam while ensuring a thorough understanding of the essential concepts. He demystifies the functional differences between simple and complex trusts, providing clarity on federal tax implications and briefly introduces grantor trusts for awareness. Emphasizing the streamlined focus of modern exams, Nick walks through the process of identifying income items and deductible expenses pertinent to Form 1041. He gives particular attention to calculating the beneficiary's taxable income from a trust, which bears significant relevance for tax reporting, ensuring that every piece of information is aligned with the most current exam requirements.