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A blind trust is where an executor or someone given a POA (power of attorney) have full discretion over the assets, and the beneficiaries have no knowledge of the holdings of the trust
For tax purposes, the "blind" part isn't relevant
Trusts considered grantor trusts (where the grantor of the trust can revoke, change, control the trust, etc) are pass-throughs and are taxed to the grantor as if the trust wasn't there
Irrevocable trusts, where the grantor of the trust has truly given away, sold or otherwise conveyed assets to a trust and completed that transaction, are taxed on the trusts 1041 tax return at trust tax rates
What it really comes down to is whether the assets really belong to the grantor or to the trust
The grantor (trust maker) DOES control things in a way (by dictating in the terms of the trust, the charity, people, companies, etc that will be the beneficiaries) BUT the grantor cannot be the beneficiary him/her self or you are back to a non- completed transaction, and it would then be back to a pass through status
Hi, if you put money in with taxes paid up front, are there any taxes when you take out?
The Trust will any taxes on earnings all along the way
And then once distributed ou will start to pay taxes on interest, etc.
Distributing them back out to you, however, is not a taxable event ... it just changes who ( the trust or then beneficiary) owns the assets, hence pays the taxes
I think thats it,
Thank you as well ... let me know if you have further questions
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