date:Sep 18, 2013
or close to it.
The IRS makes its estimate using a complicated formula tied to the level of U.S. Treasury bond yields during the time when the trust is set up.
If the trusts investments outperform that benchmark rate, then the extra earnings pass to the designated heirs free of any estate tax. The rate has been hovering near all-time lows since 2009. For trusts set up this month, its 1.4 percent.
With a big enough spread between the actual performance and the IRS rate, a Jackie O. trust can t