Question
Revocable Living Trust and Residual Checks
My husband receives residual checks from acting, which we file on our taxes. We are considering putting those in the name of our revocable living trust, so that those checks are available to our beneficiaries after our death. If our revocable living trust begins to receive those checks each year while we are living, and they are in excess of $600, how would we still report that income on our individual tax return? And will that money be taxed at a higher rate because it is going to the trust, versus just keeping the checks in my husband’s name?
