Do trusts pay taxes?
Yes. The IRS publishes tax rates for trusts. For example here is the 2007 tax rate published by the IRS:
2007 Federal Estate and Trust Tax Rates
| If Taxable Income is: | The Tax is: |
| Not over $2,150 | 15% of the taxable income |
| Over $2,150 but not over $5,000 | $322.50 plus 25% of the excess over $2,150 |
| Over $5,000 but not over $7,650 | $1,035.00 plus 28% of the excess over $5,000 |
| Over $7,650 but not over $10,450 | $1,777.00 plus 33% of the excess over $7,650 |
| Over $10,450 | $2,701 plus 35% of the excess over $10,450 |
Overall, there are a multitude of issues with regards to Wills, Trusts and Advanced Directives, and to make sure that you are doing everything you can during your lifetime to prepare for what will happen after you have passed, contact a Conroe trust tax lawyer at Garg & Associates today to get this process started and to protect the future of those you love.
Please contact our office to see how we can assist you. Learn more about our Areas of Practice.
