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When the trees are logged for use as lumber, the carbon is sequestered into structures and new trees are typically planted (or allowed to grow) for future logging, capturing carbon in the meantime.

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Good point!

I wonder if a 1000 year old tree would gather more or less carbon over it's lifetime than 20 separate 50 year old trees?

I recall reading somewhere that trees follow a sigmoid growth pattern, reaching a maturity where they no longer create a whole lot more biomass. I think the 20 separate trees would do better.

Depends on the trees but if we are talking about redwoods its certainly more for the 1000 year old tree.

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