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.
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Attribute |
Estate |
Trust |
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Separate income tax entity |
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Controlling document |
|
|
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Can have both income and remainder beneficiaries |
|
|
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Computes entity accounting income before determining entity |
|
|
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taxable income |
|
|
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Termination date is determinable from controlling document |
|
|
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Legal owner of assets under fiduciary’s control |
|
|
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Document identifies both income and remainder beneficiaries |
|
|
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Separate share rules apply |
|
|
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Generally must use calendar tax year |
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