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Infolawyer
Infolawyer, Attorney
Category: Estate Law
Satisfied Customers: 55854
Experience:  Licensed attorney helping individuals and businesses.
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Are trust funds for minor children taxed even if the child

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Are trust funds for minor children taxed even if the child has not turned 18 and is still in school?
Hello and thank you for the question.
Such a trust is an excellent way to deal with taxes and save.
Assets in the trust grow tax free.
A local estate lawyer can cheaply draw up the trust and help coordinate funding.
A trustee would manage it ranging from a bank to a parent.
martindale.com and findlaw.com are both excellent lookup directories. Both highly rated. Both used by lawyers. Easy to search and find local options. Good luck. Kindly rate the answer OK or higher.
Customer: replied 3 years ago.

If a court appointed trustee puts money in a trust for a child and it is then invested in Certificates of Deposit through a bank, is the account tax liable for the duration of the investment, again assuming the child is under 18 years of age?

It remains tax free.
Customer: replied 3 years ago.

When the child turns 18, does the child have to then pay taxes on the CD and/or the interest it has accrued to that point?

Customer: replied 3 years ago.
Relist: Incomplete answer.
Once money is paid out of the trust, and is over 18, it would be income and taxable. i wish you the best. Kindly rate the answer positively.
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