Legal Question in Wills and Trusts in New York
supporting documentation and tax handling of trust money
My grandfather died and I received money from a trust as one of the beneficiaries. The trust was set up 15 years ago. All I received was a cashiers check. Shouldn't I receive some sort of documentation or accounting? Also, how is the receipt of this money handled on my taxes? Should I receive a 1099? And who is responsible for issuing it? One of the trustees told me that the trust money was tax free (I'm pretty sure it is), that I didn't need any kind of documentation, and that I shouldn't report the receipt of this money when doing my taxes. I'm a little worried because now that I've cashed the check I have no proof as to where this money came from.
1 Answer from Attorneys
Re: supporting documentation and tax handling of trust money
Inherited money is not subject to Federal income tax. Any inheritance tax which may be involved is the responsibility of the estate.
If you want an accounting you need to ask for one and if it is not provided you may petition the court to compel one.
This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon in any way. All readers are advised to consult an attorney to address their specific legal concerns. Additional facts could affect the answer given.
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