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 2000 Estate & Trust Income Tax Rates

A

B

C

D
Taxable Amount Over
Taxable Amount Not Over
Tax on Amount in Column A
Rate of Tax on Excess over Amount in Column A
0 1,750 0 15%
1,750 4,150 263 28%
4,150 6,300 935 31%
6,300 8,650 1,601 36%
8,650 Over 8,650 2,447 39.6%

 2001 Estate & Trust Income Tax Rates

A

B

C

D
Taxable Amount Over
Taxable Amount Not Over
Tax on Amount in Column A
Rate of Tax on Excess over Amount in Column A
0 1,800 0 15%
1,800 4,250 270 28%
4,250 6,500 956 31%
6,500 8,900 1,654 36%
8,900 Over 8,900 2,518 39.6%

Notes:

bulletOrdinary living trusts do not pay income tax during the grantor's lifetime.  Instead the grantor lists trust income and deductions on his/her individual income tax return.
bulletLife insurance trusts generally do not pay income tax or file income tax returns during the insured's lifetime because increases in policy value are not taxable.
bulletEstates and Trusts are allowed a deduction for distributions to beneficiaries which frequently reduces taxable income to zero.
bulletEstates and trusts are subject to a maximum capital gain rate of 20%, so it doesn't make any difference if keep in the trust as corpus or distributed as income to the beneficiaries.