* **Inter vivos trusts:** These are trusts created during the settlor’s (the person creating the trust) lifetime. * **Family trusts:** These are trusts created for the benefit of family members. * **Estate planning:** The process of managing and distributing assets after death. * **Tax-planning opportunities:** Strategies to minimize tax liability.

* The new legislation is aimed at preventing tax avoidance and evasion. * The legislation is expected to have a significant impact on the use of trusts, particularly for high-net-worth individuals. * The legislation is being debated and may be amended before it becomes law. * The legislation is expected to be implemented in the coming years.

* Explain the specific legal framework and regulations governing trust property transfer and tax treatment in the US.

This difference, known as the “AMT excess,” is considered a “non-refundable” tax credit.

## A Deeper Dive into Anti-Money Laundering (AML) and Trusts

* **Trusts:** A trust is a legal arrangement where a trustee holds assets for the benefit of one or more beneficiaries.

This schedule is designed to provide information about the trust’s activities and financial performance. **Key Points:**

* **Trust Reporting Rules:** These rules are designed to ensure transparency and accountability in the management of trusts. * **Schedule 15:** This is the new reporting schedule that trusts must complete.

The rules are designed to prevent the avoidance of taxes and ensure that the family trust is taxed in the same way as other trusts. **Key Points:**

* **Taxation of Family Trusts:** Family trusts are subject to the same tax rules as other trusts. * **ITA Exceptions:** There are specific exceptions to the rules for family trusts outlined in the ITA. * **Purpose of the Rules:** The rules aim to prevent tax avoidance and ensure fair taxation of family trusts.