Estates and Trusts
Definition - What does Estates and Trusts mean?
Estates and trusts can be considered as a tax entity. After the death of an individual, the estate has to report income. A trust, on the other hand, is created by someone with an aim to protect his or her assets. The income from a trust is usually distributed to beneficiaries.
Justipedia explains Estates and Trusts
Estates are subject to pay estate taxes if the total value of assets exceeds a certain amount. This amount is currently $1,500,000, but it can change each year. Estate tax is different from estate income tax which is paid on income. Trusts can be formed in the life or after the death of a person and is also a separate tax entity.