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.
On the other hand, if that income were in a testamentary trust, the income would be taxed at the lowest marginal rate, which would range from about 22% to 27%, depending on the province. The tax payable by the testamentary trust. August 2005 Â© 2005 United Financial Corporation. testamentary trust can still provide significant benefits even if a beneficiary is taxed in the middle tax bracket and the trust earns less than $35,000 in income. We generally recommend that a testamentary trust be created if it will likely hold at least $300,000.