"Jeff" wrote in message
. ..
Gilligan wrote:
Tax rates for trusts:

http://www.irs.gov/formspubs/article...112782,00.html

Much higher than individual taxes.
I don't think that's talking about charitable trusts, such as the Bill &
Melinda Gates Foundation.

A trust is a taxable entity. Bill's "charitable trust" is actually a
foundation that is tax exempt. It is the tax exempt status of the foundation
or corporation that makes it tax exempt, not the holding of the funds
irrevocably out of the control of Bill Gates in the form of a "trust" (it's
actually a gift that is realized and deducted over a period of up to 5
years, unlike a trust). I know of no trust that is tax exempt and could find
no such trust in the IRS regulations. Bill Gates can receive income from
this "charitable trust" which is not tax free, but is taxed at Bill's tax
rate. He must receive a minimum of 5% of the holdings per year, of which
income is taxed. The income of the charitable foundation is not taxed. The
income of a trust is taxed at rates much more than the rates for
individuals.