Announcement

Collapse
No announcement yet.

Trust for disable person

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    #16
    She is 75. There is nothing saying that it is a Special Needs Trust, just a simple trust under will. She does have mental issues but is functional for all of her life. The profit could be substantial, $200,000 estimated. Trustee is gathering that info for me and getting an appraisal back to 1986 when mother died. Mother was sole owner of the house. There is no record of the house's value in 1986.

    Can the trust be ended? Over the years the trustee and another daughter of the mother have been giving money to the disabled daughter when the cash ran out 10 or so years ago. So there is money that needs to be paid back to the other children when the house is sold. ( I'm getting that figure, hopefully soon.) If that money is substantial, will it allow the trust to end?

    I've read that IRS has a negative view of ending trust before the trust purpose is completed. If the remaining proceeds from the sale of the house is small I would like to end the trust. This will also allow CG to pass on to the beneficiary, much lower tax issues. If the trust needs to report the sale and pay the taxes, estimated at $60,000.00, it will surely end the trust going forward. Why not just end the trust before that happens.
    Last edited by BOB W; 11-19-2014, 06:40 PM.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

    Comment

    Working...
    X