Income Taxation of Trusts and Estates

Free CFP Exam lesson in Tax Planning. 15 min read, ~2,216 words.

Trust brackets hit 37% at ~$15,200 of income. Individuals do not hit 37% until ~$626,350. Distribute to lower-bracket beneficiaries whenever possible. DNI = trust gross income - capital gains to corpus - deductible expenses + tax-exempt interest (net). This is the ceiling for the distribution deduction. Grantor trust = disregarded...