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By using Trust II, does a Beneficiary incur taxes?

April 26, 2017Beneficiary ii incur taxes Trust

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By using Trust II, does a Beneficiary incur taxes?

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Taxes may be due on interest received when any EE bonds are redeemed. If bonds are not redeemed, then no tax is due. Because Trust II funds are held in a non interest-bearing account, Trust II accounts do not generate a taxable event. Only when we redeem EE bonds does a taxable event occur.