Are wills and trusts taxed differently?

August 15, 2011

From:  Ellen
Date:  Thu, 11 Nov 2010

My husband and I have wills where we are each other's beneficiary. Beyond this, our children get everything 50:50 in a trust.

Will the children have to pay more taxes because the money is in trust than they would if we had a traditional will?

Thank you for your help, Ellen

Answer

Date:  3 Dec 2010

Hello Ellen,

No. The income tax returns for the trust and a will are very similar.

Hopefully you have consulted with an attorney to get estate planning advice for your individual situation.

Good luck!


Mike Gray

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