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    Trust Estate Question

    Received this question from my t/p's co-trustee and executor of the trust

    T/p is still alive, but is suffering from Alzheimer, and in a Residentail Care Facility.
    Co-trustee of the Trust which is also the Successor Trustee and the Executrix found out that one of the "siblings" (beneficiaries) that is due to inherit has a "huge" tax lien.

    The question is whether or not the T/P's Trust (Mom's which she right now is still alive) is in jeopardy of any kind of assessment from IRS or State of California or IRS assessments due to one of the beneficiaries having tax liens on beneficiaries. It is a "Living Trust", then the next question is whether or not California or IRS can attach after the Trustee's death when ready to distribute to the beneficiaries and whther or not it will impact the other "beneficiaries" of the Trust.

    I don't think so as it is not a "spendthrift trust", but thought I would just seek some opinions.

    Thanks,

    Sandy
    Last edited by S T; 10-07-2009, 08:55 PM. Reason: Clarification

    #2
    I don't think they could attach trust assets or the other benes but the trust could receive a garnishment on amounts due the bene with the debt.

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      #3
      Legal issue

      Someone needs a lawyer!! I would not give advice on this situation.
      This posting is for general discussion purposes and is not meant to be reliable tax advice.

      Comment


        #4
        Ditto this

        Originally posted by taxcraft View Post
        Someone needs a lawyer!! I would not give advice on this situation.
        I love trusts and estates (wierd I know) but I'd have them call a tax attorney, preferrably one who specializes in trust issues.

        ATG
        "Congress has spoken to this issue through its audible silence."
        Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

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