Legal Question in Wills and Trusts in New York

My mother left an inherited ira in a spendthrift trust to me naming the trust as the beneficiary . my sister dispurses the money to me monthly based on the ira. the brokerage firm pays the taxes on the money. i get 900 per month and they send 600 to the irs. should i be paying the taxes on the disbursements? it would be a lot less than the 600 per month paid to the irs


Asked on 1/22/12, 1:32 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

I have not seen the trust or its language, if any, regarding distributions and tax payments. However, doing trust accounting, I suggest that, unless the trust does not permit this, the trustees distribute you the full amount of the payment and issue you a form K-1 for the distribution. You would then report the full income and be responsible for the taxes on the distribution, which should be less than the tax rate payable by the trust. More information may produce a different response.

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Answered on 1/23/12, 8:31 am


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