Question: If I have an irrevocable trust that the grantor can’t touch. How much will the trust pay if it doesn’t distribute any of its income? Response: I will assume that the trust [...]

Question: In a simple trust, when determining the distributable income, I subtract the expenses (accounting and trustee fees) from the interest and dividend income. Do I subtract 100% of the [...]

Question: We have an irrevocable family trust agreement on my Dad’s behalf. We only received a 1099-R for $130. The dividend check was written out to the trust and was deposited into a [...]

Question: I am the trustee of my parents’ trust. They have now both passed away. I want to liquidate and distribute the proceeds to the beneficiaries. Does the trust have to pay taxes upon [...]

Question: When issuing a K-1 to a trustee of a decedent’s irrevocable trust for trustee fees, how should this be reported? Should it be reported as Other Portfolio and non-business income? [...]

Question: I am trustee of an irrevocable trust holding $25,000. I now want to cash out the trust — half to my brother, the other half to me. What kind of tax do I have to pay in New York? [...]

Question: My brother and myself are the trustees of an irrevocable family trust from my deceased parents in Maryland. The trust has 5 beneficiaries (5 siblings). We just sold and closed on my [...]

Question: If someone only places their house worth only $250,000 in an Irrevocable Trust, do they have to pay yearly income tax on it, when they are not renting it out and they are not getting [...]

Question: Which Massachusetts tax form do I file for a nominee real estate trust? The only income is interest earned of $1,600 from the proceeds sitting in a bank account until they were [...]

For the most part, trusts don’t pay taxes on their income, instead passing the income through to the trust beneficiaries. But when they do pay taxes, the tax rates are often higher than [...]