Legal Question in Wills and Trusts in California
My Mom passed away and had a Trust. My brother and I are trustees. The Trust says to pay grandkids after final expenses are paid. my brothers wants to hold part of the money for another year in case he has to pay taxes on the money he received. I had bought him out on the house. he said since the house closed after he did his taxes he wants to hold onto the money until next tax year. I thought inheritance was not taxed. Also is it legal for him to hang onto the money that long?
1 Answer from Attorneys
Assuming the trust estate was less than about $5.5 million, you are correct that there are no taxes. However, there may be a capital gains tax on the sale of the house. Your brother does not need to wait until next year to have the tax calculated, many CPA's will have time to calculate any taxes owed in a month or so.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
