A few years ago, I opened a trust fund for my niece who now turns 18 yrs. I want to transfer this fund to her which is about $70,000. Would I or my niece be subject to pay any taxes on this fund?
When I opened this Fund, I put my name and my niece name on it with our social security numbers.
I appreciate any advise befor I transfer this Fund.
2006-11-19 08:32:02 · 3 answers · asked by PARIS83 1 in Business & Finance ➔ Taxes ➔ United States
If this is a Uniform Transfers to minors account then your niece should have been reporting the earnings on the account each year. When she turns 18 she gets the money in the account tax free.
If this is truly a trust then you should have been filing a form 1041 with the IRS and a similar form with the state. The trust would have paid tax on the earnings each year. When the money is distributed to your niece she will not have to pay tax on the funds.
Assuming you never put more than $10,000 or $12,000 in the account in any year you would not have had to pay gift tax and you are not taxable when to money goes to your niece.
2006-11-19 22:58:06 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
i think of anyplace you place you £250 this is going to be a stable investment. I do on line banking with Lloyds TSB and have opened the account by way of there. I particularly have set up an prompt debit for a small quantity each and each month to flow into his have confidence fund for which I recieved a £20 boots voucher. The babies mutual deliver you the main significant factors of the account while this is desperate up so different people ie grandparents can donate on each occasion they prefer. To be honest even regardless of the undeniable fact that I particularly have set up an prompt debit to the account its no longer for a lot because of the fact the account won't be able to be accessed till the youngster is eighteen. I dont be conscious of while you're conscious yet once you have been involved in saving on your baby then if grandparents open money owed for them they get better deals ie tax loose. you may desire to hence only shop the teust fund account yet open a miles better account on your baby which could be accessed in the previous they turn 18 x
2016-12-29 05:37:00 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Ask the institution you opened your fund with. Usually, a person is taxed if it's an income. So maybe only your niece will be taxed.
2006-11-19 08:43:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋