A trust has two trustees.
It comes to light that the trust has not been paying state taxes on trust capital gains.
Question: Are both trustees equally responsible for this omission. If one trustee is passive and the other is the active administrator, is the passive trustee equally responsible.
In this case, the active trustee has died. I want the passive trustee to pay the penalties and interest on the back taxes out of his own personal funds not the funds of the trust. He is blaming the co-trustee who died for making the mistake because, he says, the deceased trustee controlled the trust administration of the trust during the time they were co-trustees..
A trust is an estate planning tool in which you allow a third party (called a trustee) to hold your assets on behalf of your beneficiaries. Several types exist.
A trustee is the person or legal entity who administers a trust according to the wishes of the person who set it up (as specified in the trust agreement).
Written by attorney Inna Fershteyn
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