A Washington Irrevocable Trust, also known as a Qualifying Subchapter-S Trust (SST), is a legally binding arrangement that allows individuals to transfer ownership of their assets into a trust. This type of trust offers several benefits, including tax advantages and the protection of assets. An SST is specifically structured to meet the requirements set by the Internal Revenue Service (IRS). By complying with these regulations, the trust can qualify for Subchapter-S tax treatment, which is typically reserved for small business corporations. This advantageous tax treatment allows the trust to avoid double taxation by having the income taxed only at the beneficiary level. There are two main types of Washington Irrevocable Trusts that can qualify as Costs: 1. Traditional SST: This type of trust is created by an individual (the granter) who transfers their assets into the trust. The granter designates a beneficiary, typically an individual or a family member, who will receive the trust's income. The beneficiary has the right to demand income distributions from the trust, and these distributions are taxed at their individual tax rate. The trust must meet specific requirements outlined by the IRS to qualify as an SST. 2. Electing Small Business Trust (ESB): An ESB is a type of SST specifically designed for trusts holding interests in S-corporations. S-corporations are closely held corporations that meet specific criteria set by the IRS. By establishing an ESB, the trust can accumulate and distribute income from the S-corporation to its beneficiaries, while still qualifying for Subchapter-S tax treatment. In Washington, establishing an SST requires compliance with state laws and regulations. It is vital to consult a qualified estate planning attorney or financial advisor to ensure that all legal requirements are met when creating and managing an SST. By doing so, individuals can maximize tax benefits, protect their assets, and efficiently transfer wealth to their designated beneficiaries.