If the trust has capital gains, which usually stay with the trust, those are taxed at a lower rate:
| LONG-TERM CAPITAL GAINS 2019 |
| Rate |
Single |
Married Filing Jointly |
Married Filing Separately |
Head of Household |
Trusts & Estates |
| 0% |
$0-$39,375 |
$0-$78,750 |
$0-$39,375 |
$0-$52,750 |
$0-$2,650 |
| 15% |
$39,375-$434,550 |
$78,750-$488,850 |
$39,375-$244,425 |
$52,750-$461,700 |
$2,650-$12,950 |
| 20% |
$434,550+ |
$488,850+ |
$244,425+ |
$461,700+ |
$12,950+ |
(from https://www.chernoffdiamond.com/services/private-client-executive-life-insurance/private-client-reso...)
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