A testamentary trust has been designated a graduated rate estate (GRE). In accordance with the decedent's will, the widow and the decedent's adult son each receive 40 percent of the GRE's income and the remaining 20 percent of the GRE's income is retained in the GRE. Briefly describe the tax consequences of the income earned and retained by the GRE, and the income distributed by the GRE to the widow and son.

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The Answer of A testamentary trust has been designated a graduated rate estate (GRE). In accordance with the decedent's will, the widow and the decedent's adult son each receive 40 percent of the GRE's income and the remaining 20 percent of the GRE's income is retained in the GRE. Briefly describe the tax consequences of the income earned and retained by the GRE, and the income distributed by the GRE to the widow and son.

A Testamentary Trust Has Been Designated a Graduated Rate Estate