Question: Dad died in 2021 in Florida. He was the grantor of a revocable trust and I (daughter) was the trustee. My understanding is that upon his death, it became an irrevocable trust. When he [...]

Question: A final income tax return was filed for my parents’ trust in 2015. In 2021 the trust received income (approximately $2,400) from a claims settlement along with a 1099 . Should I [...]

Question: How are revocable trusts taxed? Response: Revocable trusts, also often called “living” trusts, are taxed to the grantor — the person who created the trust. In most [...]

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 [...]