If you have an irrevocable trust, there’s a little-known tax strategy with a tight deadline you need to know about right now.

The 65-day election allows complex trusts to distribute income to beneficiaries and count it for the prior tax year, and it expires around March 5th or 6th.

Because trusts hit the top 37% federal tax bracket at just $16,000 of income, moving that income out to a beneficiary who is in a lower bracket can result in significant tax savings, potentially over $1,700 on less than $10,000 of distributed income.

In this video, Tommy Blackburn walks through how the 65-day election works, why trust tax brackets are so compressed compared to individual rates, and a simple example showing the real dollar difference this strategy can make.

What you will learn:
⭐ What the 65-day election is and who it applies to. (0:00)
⭐ Why trusts reach the 37% bracket so quickly. (3:15)
⭐ How trust tax brackets compare to individual brackets in 2025. (4:08)
⭐ A real example: the tax savings from distributing $9,350 out of a trust. (5:07)
⭐ Why the window to act is so short after 1099s are issued. (1:41)

Ideas worth sharing:
⭐ “Trusts don’t even have a 12 or 22% bracket. They jump straight to 24.” – Tommy Blackburn, Mason & Associates ⭐ “About all we had to do was make the election and distribute $9,350 out of the trust to save $1,750 in taxes.” – Tommy Blackburn, Mason & Associates

Related videos to check out:

What is financial planning for federal employees? https://youtu.be/O1-N_Tj6KXA?si=rQ_wj3HrulFfiCHS

Estate planning for federal employees – https://youtu.be/39LtONK_D0w?si=ESa11SR_gbe1avL0

Year-end tax planning – https://youtu.be/sX7uQ1f0410?si=KMMaiHnVZ34smnTZ