Sonora, CA asked in Estate Planning and Tax Law for California

Q: If revocable trust holds ee bonds to be cashed, given to beneficiaries upon death of trustee will the interest income

on the ee bonds be shown as the trusts income and therefore the trust pays the taxes or will the interest income have to be shown as income on the beneficiaries taxes, and therefore be the beneficiaries responsibility to pay those taxes personally?

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1 Lawyer Answer
Howard E. Kane
Howard E. Kane
  • Estate Planning Lawyer
  • Oakland, CA
  • Licensed in California

A: This is a great tax question. I recommend that you ask your CPA or tax advisor how this is handled. Tax questions are typically outside the lane of probate attorneys. However, I suspect that the proceeds will be considered non-taxable inheritance. The 2022 estate tax exemption amount is $12.92 million.

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