I am a co-trustee and a beneficiary. In 06 I was given a disbursement of money from the irrevocable trust. I have been told that I do not claim the disbursement as income taxes--as they are not income---but I would need to later claim, of course, any interest earned from that disbursement.
Is this correct?
2007-01-06 12:06:45 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
While the money is in the trust, the trust pays the tax. Once the money is distributed to beneficiaries, any income and tax liability generated by using the distributed money is each beneficiary's responsibility.
Best wishes.
2007-01-06 13:24:14 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
money inherited has an inheritance tax upon disposable of said trust fund its not earned income but it is income u should check itll catch up with u in the long run good luck
2007-01-06 12:15:24 · answer #2 · answered by sunshine 5 · 0⤊ 0⤋
how long after the grantor passes away does the trustee hold funds before disbursing to beneficiary
2015-04-19 18:28:07 · answer #3 · answered by brenda 1 · 0⤊ 0⤋