Irrevocable Trusts

[JoshDom1898]

What is the name of your state? CA and AZ

I am a sole member of an LLC and I get hit hard this year on taxes (30K). One of my friends suggested that I look into an irrevocable trust because it is the best for tax avoidance. My question is how is it so good for tax avoidance?

Say, if I amended the LLC to make the Trust the sole member, the proceeds I make from the company will be distributed to the Trust, and the beneficiary of the trust (me) will distribute the trust (estate)?

Could someone clarify? I would like to know what's the best way to sheild myself from paying so much in taxes if I can avoid it or mitigate it.

Thanks

 

[Dandy Don]

This question belongs on the TAX LAW message board or better yet by consulting a local CPA or tax accountant who has experience with estates or with a certified financial planner or estate planner.