Numbers 1 through 3 are legal, not tax, questions. Answers depend on the precise terms of the trust document.
4. Trusts are subject to income tax similar to individuals; details depend on the type of trust. The money itself is not taxable, but the income it generates (interest, dividends, etc) is.
5. Best way to avoid federal inheritance tax is to die with less than $15,000,000 in your estate. Otherwise, the answer depends on where you live. If you have any possibility of federal inheritance tax, you need to talk to qualified attorneys and tax pros, not random redditors.
HospitalWeird9197 on
You said you’re in the UK. Hire a solicitor who deals with wills, trusts, and IHT.
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Numbers 1 through 3 are legal, not tax, questions. Answers depend on the precise terms of the trust document.
4. Trusts are subject to income tax similar to individuals; details depend on the type of trust. The money itself is not taxable, but the income it generates (interest, dividends, etc) is.
5. Best way to avoid federal inheritance tax is to die with less than $15,000,000 in your estate. Otherwise, the answer depends on where you live. If you have any possibility of federal inheritance tax, you need to talk to qualified attorneys and tax pros, not random redditors.
You said you’re in the UK. Hire a solicitor who deals with wills, trusts, and IHT.