What taxes are due after the passing of the last Trustor?
Income taxes are due for the year the Trustor passed. Estate taxes are due only for estates over $2.0 Million in 2006. In 2010, there is no Estate Tax but in 2011, many planners are preparing the the Estate Tax limit to return to around $1.0 Million dollars. If you estate this year is worth $2.0 Million and you, as the last surviving Trustor of your trust, passed, estate taxes would be due only on the $500,000 over the $1.5M limit. The tax rate is around 45%. If you are married, your trust may be set up as an A-Disclaimer Trust which can double your estate tax exemption (hence, this year the exemption on your estate would be $4M). When the first spouse passes, the surviving spouse has the option within nine months of splitting the estate into two trusts. The first trust’s assets would be at the surviving spouse’s disposal. The second trust’s assets are not to be used except for Health, Education, Maintenance or Support. Setting up the second trust only requires contacting the IRS for a
