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Posted by Stuart A. Bronstein on October 25, 2006, 6:46 pm
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sethb@panix.com (Seth Breidbart) wrote:
>> I have a client who is the administrator of an estate that
>> is in litigation between the beneficiaries. The
>> administrator is under a court order to pay only expenses
>> and distribute nothing to the beneficiaries until the matter
>> is resolved. The income to the estate is significant and
>> results in a higher tax rate than the beneficiaries are
>> likely to pay had the income been distributed.
> Would it make sense to set up a separate trust, which gets
> the income that should be distributed to the beneficiaries
> and holds it until the court rules on who the benficiaries
> are?
Estates and trusts have he same marginal tax brackets. The
highest rate, 39.6%, kicks in at $7500.
Stu
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