Benefit of Proper Trust Structure

Our company is one of the leaders in the trust structure and estate planning arena with over 80 years of combined industry experience.

Nexxess International offers a proprietary trust structure allowing our clients to benefit in more ways than one. 
A person (or entity) owes any tax on capital gains is due to two reasons. First, it’s because «they» were the ones who created the gain. If the «person» or the wrong «entity» creates the gain then the IRS codes say it’s a capital gain. Secondly, people owe a tax on capital gains because the “taxable event” actually «occurred.» However, if the taxable event never occurs, then no tax is due. How is this possible? It’s possible because we don’t let the «person» own the assets when the gain occurs. The IRS Tax Code says the gains are «excluded» -to the extent that the gains are not distribute to anyone, but allocated to the body «corpus.» of the trust.

Therefore, the gain is technically not a gain for the individual (beneficiary has not received it, and the trust is keeping it within the body. So, the IRS code states the gains are «excluded.» The net effect is the tax is deferred, similar to tax deferment using IRS 1031 tax code. This is also true to for passive income. This is all in accordance with oft overlooked IRS Tax Code. At Nexxess International, we help you navigate these codes to realize the best outcomes for you, your business and your family.