No. Certainly not during your lifetime. Generally, trusts and estates are taxed like individuals. In turn, tax principals that apply to individuals will also apply to living trusts. The individual responsible for taxes on income earned by the trusts is the individual who benefits from or receives the income. The liable person for taxes on income received by an estate also depends on how the income is classified. For example, was the income earned by the decedent, the estate or income distributed to the beneficiaries? Any income retained by the trust is taxed to the trust and any distributed income is taxed to the beneficiary.
Find answers to all your living trust questions here:
- Is a living trust right for me?
- How can a living trust benefit me?
- How to fund your living trust
- How could a living trust be helpful at my death?
- How is a living trust helpful if I become incapacitated?
Ready to begin Estate Planning?
Envisioning what your family’s future will be like once you are gone can be a difficult but necessary task when estate planning. Estate planning can be a complex financial under taking; by hiring an experienced Folsom estate planning attorney, you ensure your family’s stability is taken care of. At Travis G. Black & Associates, we handle the hassle of all the paperwork so you don’t have to. Our skilled Folsom estate planning lawyers review all trusts with you before filing to make sure they are complete, exact and clearly stated.
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