As of January 1, 2016 testamentary trusts, both existing and new ones, will have to pay tax at top marginal tax rates. Most testamentary trusts will no longer be able to benefit from graduated lower tax rates. The only exception will be for a single testamentary trust per will that elects to be a Graduated Rate Estate (GRE) that will benefit from graduated tax rates for 36 months.
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
