Calculating efficiency over a period of time can identify opportunities to reorganize staffing, or add or remove employees based on the company's volume of business, and an individual employee's long-term productivity can factor into merit increases and bonuses.
While trusts avoid probate, they don't avoid taxes. A transfer from a revocable trust will be taxed the same way as a transfer made through a will. Someone who inherits money from a revocable trust receives it tax-free, but the estate might have to pay estate tax on everything that it contains before distributing it.
Even though complex trusts can accumulate income, itâs usually not wise to have the trust actually do so, because the trust will be taxed on the income it accumulates. With trust tax rates hitting 39.6% at only $12,150 itâs not good to pay taxes out of a trust. Additionally, the 3.8% Obama-care surtax kicks in at that same âtopâ level.