[kayzee997]

I have a bit of confusion regarding the “estates and trusts” section since there is alot of information there. To simplify it for me I have written down a few points as per my understanding of the data. I’m attaching the page.
I would appreciate if someone could look it over and let me know if anything needs correction.
There are a couple of “?” on points I’m not confident about.
Page numbers written are for respective form formats so you can ignore that.

Your help and advice will be much appreciated.

[kayzee997]

Pls right click the image and open in new tab if you can't see it

[murano]

Hi kayzee997
IMO, estate tax is a transfer tax, rather than income tax, imposed on the gross estate at the decedent's death. And form 706 must be filed if the gross value(before deductions)of the estate plus accumulated gift exceeds 5.49m in 2017. Earnings from the estate is not considered since it's subjected to estate income tax. Corpus is not necessarily taxed since there are deductions.
income distributed to beneficiaries is not tax free but taxable. But there is no double taxation since it is deductible on form 1041 (to the extent of DNI less tax-exempt interest).
hope it helps 🙂

[Author]

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