Inheritance in Trust or Outright: The Tax Drag: the drag, by the heir's income
2026 law · reviewed September 4, 2026
| Heir's own income | Trust's yearly tax | Heir's yearly tax | Yearly drag | Ten-year gap |
|---|---|---|---|---|
| $40,000 | $13,643 | $7,760 | $5,883 | $78,138 |
| $80,000 | $13,643 | $9,086 | $4,557 | $61,542 |
| $150,000 | $13,643 | $9,600 | $4,043 | $55,468 |
| $300,000 | $13,643 | $15,520 | $-1,877 | $-19,901 |
| $700,000 | $13,643 | $16,320 | $-2,677 | $-29,812 |
$1,000,000 earning 4 percent, kept in trust or left outright to a single heir, by the heir's own income, 2026 tables (Rev. Proc. 2025-32; § 1411).
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