Thanks for the nudge about 2024 taxes - I didn't know about the earlier deadline. I have no idea if it had income, but clearly I need to find out. I'm sure I'll have more questions!How to handle the taxes: consult a CPA who is familiar with trust accounting. Did the trust have income in 2024? If so, consult the CPA soon. Trusts have the same income tax filing deadline as individuals, but if the trust had income in 2024, you will probably want to make sure that it distributes all of its Distributable Net Income by about March 5 (65 days after year-end) so taxes are paid by the individual beneficiaries rather than by the trust at higher trust tax rates. As a result, trusts have, in effect, an earlier deadline for preparing tax returns than individuals.I don't understand how to handle the taxes, how/when to distribute the assets to beneficiaries, or my ongoing responsibilities as trustee.
How/when to distribute the assets to beneficiaries: other than the tax effects, mentioned above, this is governed by the document creating the trust (which could be a will). Read it carefully. Ask questions here if you aren’t sure what a paragraph means.
Ongoing responsibilities as a trustee: this is governed primarily by the document creating the trust but also by state law; for example, state law might require you to provide an annual financial statement to all beneficiaries.
Statistics: Posted by synapticgap5000 — Mon Jan 20, 2025 7:48 pm — Replies 6 — Views 276