HB asked:
We placed my parent’s property (personal home) into a irrevocable trust. The instructions was to sell the property upon the death of one of the parents with the proceeds going into trust account at a bank of our choosing. We are to distribute money from the proceeds to my surviving parent for living expenses, etc. As far as I know, the trust was not given a tax id (still checking with lawyer who drew up the trust for us).
We placed my parent’s property (personal home) into a irrevocable trust. The instructions was to sell the property upon the death of one of the parents with the proceeds going into trust account at a bank of our choosing. We are to distribute money from the proceeds to my surviving parent for living expenses, etc. As far as I know, the trust was not given a tax id (still checking with lawyer who drew up the trust for us).
So now that the bank trust account has the funds, can I as the trustee distrbute the money without any tax liabilities? Who owns, if any, the tax responsibilities here?
The property is in California and proceeds from the sale was less than $500,000.
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My suggestion is that you don’t go looking for an answer in this website. You should deal with the attorney. There may be a tax liability depending on how the trust was set up.
I have a trust for my kids and my second wife when I kick the bucket. The only thing that I do know it that it will not go into probate here in California.
I think that it may go tax free to my second wife, but I have no idea on my kids. That’s their problem.
Get hold of the attorney. That’s what they are paid for. You don’t want the surviving parent to owe taxes later.