Alan, Bernard and Carolyn are beneficiaries of the ABC trust. Alan earns $400,000 per year in income (putting him in the highest tax bracket), while Bernard and Carolyn earn much less. During 2013, the trust gave each beneficiary $20,000. The trust earned a total of $70,000 in income. What should the trustee do to minimize the income tax on the family as a whole?

Answer rating: 100% (QA)

SOLUTION To minimize the income tax on the family as a whole the trustee should consider the followi... View the full answer