My question involves estate proceedings in the state of: Washington. My mother died 3 years ago. My father died 3 months ago. They both left a will and an irrevocable trust. I have 2 brothers and a sister, all older. My sister is my parents personal representative and also successor trustee.
It is not a large estate and us 4 children are equal beneficiaries of the trust. Assets are to be sold and split equally. There are 2 properties, personal property, and cash in several accounts. when everything is sold and added up it will come to something around say, $400,000.00. Or less.
My understanding is that there is no inheritance tax, and all other taxes or expenses relating to administering the trust and estate are to paid before final distribution of the trust assets. So my questions are related to what happens after the final distributions are made.
So, if there are no income tax reporting requirements, who, if anybody, has to know, has the right to know, or will want to know what we each got and how would they know?
If I take my share and put it in a bank will I ever be expected by the government to account for this money? If I am not required to file a tax return because I dont meet the minimum income requirement, does my inheritance affect that? And if this money doesnt generate any significant income from interest or whatever will I ever be required to file a tex return or declare to any government agency that I have it? Or does the bank report to any government that I have this money? And what if anything would cause the government to go looking? Would my bank be required to tell the government anything about me, and under what circumstances?
Also, since nothing will go through probate, is there any other government entity who will be looking to see how much the estate was worth or how it was distributed or if it was done properly? Does the successor trustee have to file any reports or declarations or notify anyone when there are no longer any trust assets left and the trust basically collapses?
It is not a large estate and us 4 children are equal beneficiaries of the trust. Assets are to be sold and split equally. There are 2 properties, personal property, and cash in several accounts. when everything is sold and added up it will come to something around say, $400,000.00. Or less.
My understanding is that there is no inheritance tax, and all other taxes or expenses relating to administering the trust and estate are to paid before final distribution of the trust assets. So my questions are related to what happens after the final distributions are made.
So, if there are no income tax reporting requirements, who, if anybody, has to know, has the right to know, or will want to know what we each got and how would they know?
If I take my share and put it in a bank will I ever be expected by the government to account for this money? If I am not required to file a tax return because I dont meet the minimum income requirement, does my inheritance affect that? And if this money doesnt generate any significant income from interest or whatever will I ever be required to file a tex return or declare to any government agency that I have it? Or does the bank report to any government that I have this money? And what if anything would cause the government to go looking? Would my bank be required to tell the government anything about me, and under what circumstances?
Also, since nothing will go through probate, is there any other government entity who will be looking to see how much the estate was worth or how it was distributed or if it was done properly? Does the successor trustee have to file any reports or declarations or notify anyone when there are no longer any trust assets left and the trust basically collapses?
Trust Administration: What Taxes are Owed on a Trust Distribution
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