Estates and Trusts

Definition: An estate or trust is a type of tax entity.

Estates

Estates report income after an individual person has died. Estates may also have to pay tax on the total value of assets if the estate is valued at more than $1,500,000. The estate tax is a tax on assets, whereas the estate income tax is a tax on income. For more information about estates, see Estates & Trusts.

Trusts

A trust is created by an individual person to protect or to preserve the person's assets, and to distribute income to beneficiaries. For more information about trusts, see Estates & Trusts.