Tax planning usually dictates that high-income and high-wealth individuals be specified as second-tier beneficiaries of a trust arrangement.

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High-income and high-wealth individuals are often specified as second-tier beneficiaries of a trust arrangement because they are already subject to high taxes. By making them second-tier beneficiaries, the trust can distribute income to lower-income beneficiaries who are in a lower tax bracket, thereby reducing the overall tax burden on the trust and its beneficiaries.

Tax Planning Usually Dictates That High-Income and High-Wealth Individuals Be