What about taxes after death?

Federal gift and estate taxes do not apply except for large estates BUT WHEN THEY DO APPLY THEY ARE ESPECIALLY SIGNIFICANT - the excess is taxed at a rate of 37% and the tax rate goes up rapidly to 55%.

Louisiana inheritance taxes are moderate and phasing out.

Avoid the tax by simply not having the estate when you die...but if you get it out of your name and retain control, the government says that it is still taxable - what else could you do?

We find that most folks are reluctant to discuss these matters but that it is better to address them than to suffer the alternative... 

How does a trust pay income taxes? 

An "irrevocable" trust must have a separate Tax Identification Number and pays tax on its income at a rate higher than an individual.  But if an individual in a high tax bracket can put some of his income into an irrevocable trust, the trust's actual taxes might be less than what the individual would otherwise pay. And if a trust pays ALL the income to a beneficiary, the trust would have no net taxable income.  The trustee of an "irrevocable" trust must file a trust tax return (IRS Form 1041).

How does a trust get a Tax ID and IRS forms?

It depends on whether or not the trust is "revocable" - whether the settlor can "get back" trust assets into his personal name - if the trust is "revocable" the IRS requires income to be reported under settlor's Social Security Number (to do otherwise would result in less tax because the taxpayer might get a lower tax bracket if the income is allowed to be split).  The IRS calls a "revocable" trust a "grantor trust" (Internal Revenue Code § 676) and taxes trust income as the income of the settlors on their "personal" tax return.  The trustee of a "revocable" trust must file an informational tax return for the trust (IRS Form 1041), referencing the settlors' social security numbers.  The trustee can get a Taxpayer Identification Number for an "irrevocable" trust by filing IRS Form SS-4.  That form and IRS Form 1041 - a trust tax return (or "informational" return for a "revocable" trust) - are available from any IRS office or can be down-loaded directly from the IRS website on the Internet - http://www.irs.gov/.