Complete the following chart, indicating the comparative attributes of the typical trust and estate by answering yes/no or explaining the differences between the entities where appropriate.
Attribute |
Estate |
Trust |
Separate income tax entity |
|
|
Controlling document |
|
|
Can have both income and remainder beneficiaries |
|
|
Computes entity accounting income before determining entity |
|
|
taxable income |
|
|
Termination date is determinable from controlling document |
|
|
Legal owner of assets under fiduciary’s control |
|
|
Document identifies both income and remainder beneficiaries |
|
|
Separate share rules apply |
|
|
Generally must use calendar tax year |
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|