If you are the executor of an estate or the trustee of a trust, you should know that egregiously high income tax rates apply to estates and trusts at very low levels of income. In 2015, for estates and trusts, the 39.6% income tax rate as well as the 3.8% Net Investment Income (NII) tax kicks in at $12,300 of income. That’s not very high. And don’t forget, you don’t need $12,300 of investment income to pay the NII tax. If the total income exceeds the $12,300 threshold, the NII tax might be due on all of the investment income. For example, let’s say an estate has income of $212,300. The tax on the $200,000 (income in excess of the $12,300 threshold), at 43.4% equals a tax of $86,800. Ouch!
For additional details click here :Reduce 2015 Estate Income Taxes