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Infolawyer, Attorney
Category: Estate Law
Satisfied Customers: 57687
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. and 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 4 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 4 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 4 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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