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Are funds withdrawn from irrevocable trust taxable?: My mother-in-law established an irrevocable trust years ago with her sons as beneficiaries. She is currently on a limited income and eligible for medical and medicare. Due to health issues she is in an assisted living facility. The cost of assisted living is not covered by medical or medicare. My husband needs to withdraw funds from the irrevocable trust to make monthly payments to the assisted living facility. Are the withdrawn funds taxable? If so who is responsible - the trust, my husband or my mother-in-law.

Asked about 1 month ago in Trusts

Robert’s answer: The short answer is this:

If the monies withdrawn from the trust are actual income earned by the trust and then distributed out, then your mother-in-law would be responsible for any taxes owing on those monies.

If the monies withdrawn are "principal," then those monies are not taxable income. For example, money taken out of a bank account where the money was already there from prior years would likely not be taxable.

Answered about 1 month ago.


How to answer the question on a Cert. of Trust form: #8) Title to trust assets is to be taken in the following manner: : I have filled out the trustee, name of trust, date of trust and all the required information except for question #8:
Title to trust assests is to be taken in the following manner.
I'm not sure what they expect as an answer.

Asked about 1 month ago in Trusts

Robert’s answer: Typically, it would be something like this:

"John Smith, trustee or successor in interest of the Jones Trust dated (insert date), or any amendments thereo"

Answered about 1 month ago.


How can I see a trust when it's being held from us.: My grandfather passed away 9 months ago and left things to his trustee and beneficiaries. We have yet to see the will or trust and do not know if his money/estate is being handled properly. We would like a copy of the trust/will but the executor is claiming that he can only give it out 120 days after the fiscal year (Jan 1, 2017). We don't want the trustee to be able to pull all of the money away and we don't want to lose the home we live in. Any help?

Asked about 1 month ago in Trusts

Robert’s answer: Under Probate Code Section 16061.7, the trustee of a trust that has become irrevocable must send a required notice to the beneficiaries of the trust and the heirs of the deceased person. If you are a beneficiary of the trust or an heir of your grandfather, you should have already received this required notice which gives you the right to a copy of the terms of the trust.

I have no idea what this claim of waiting 120 days after the fiscal years is about. It is certainly not part of the trust law.

You need to consult with legal counsel right away so that a demand can be made on the trustee to provide a copy of the terms of the trust and the required notice.

Answered about 1 month ago.