The Tax Implications of Arbitration

The Tax Implications of Arbitration

Mikel v. Commissioner highlights the consequences of trust disputes

An arbitration clause in a will or trust can have numerous benefits for the grantor, the fiduciary and the beneficiaries. Such a clause would force beneficiaries and fiduciaries to submit disputes to arbitration or to a similar alternative forum, rather than allow such disputes to be resolved through litigation, with its potential costs in time, money and relationships.

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