<prompt> Human: I was made executor for my grandmothers estate and Im trying to help out my mother and aunts. The inheritance is below the 5.45m, there was a property and stocks but I sold it and all the moneyassets is now cash in an estate bank account. I know there is no tax since they are below the inheritance threshold but one of my aunts is wanting to setup a trust because she wants to avoid taxes. Im trying to talk her out of it because I dont think she understands what a trust is, however she is now making my mother worried saying she is going to be in a higher tax bracket now and should be doing a trust like her.From all my understanding inheritance is not considered income. Only interest gained from it can be taxed. So it shouldnt effect her tax bracket at all correct? Also maybe I am being ignorant but I thought a trust would do my mother no good as I thought you cant withdraw money from a trust.Thanks in advance.  <response>: I think the problem is that neither your aunt nor your mother understand how the taxes work. If you can explain it to them or at least your mom then great. They also need to understand what the tax brackets really mean - that kind of language usually suggests that people dont understand how tax brackets work.Anyway, she wouldnt owe taxes on the inheritance anyway so your free and clear either way. The estate would have had to pay those taxes, not your mother or aunt. Theres no sense in creating a trust to shelter money from taxes when it isnt going to be taxed anyway! 