With an irrevocable trust, if I am the grantor and trustee, can I withdraw funds from the account and will it be simply considered income and taxed at my effective tax rate?
My online brokerage will let me buy/sell stocks within the trust, once its set up.
Are capital gain profits made in a trust account taxable ?
Reading this, it seems that trusts are taxed just like individuals, but the rates are a little different.
A trust is created when you (the grantor) transfer property to a trustee for the benefit of a third
person (the beneficiary). An estate is the assets and liabilities left by a person at death. Both a trust
and an estate are separate, legal, taxpaying entities, just like any individual. Income earned by the
trust or estate property (e.g., rents collected from real estate) is income earned by the trust or
Seems that trusts arent so popular any longer and might be more trouble than they are worth.
Americans were once trust-happy. Now many are having second thoughts, and rightly so. Given the 2013 tax law, a trust may be more trouble and expense than it’s worth. Worse, a trust set up to save taxes might even increase them. “You need to ask, ‘Does this trust still make sense?’” says Kenneth Brier, an estate lawyer in Needham, Mass.