IRS tRUST

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • PHOTONANA
    Junior Member
    • Mar 2019
    • 2

    #1

    IRS tRUST

    My clien ts mother passed away. she has a trust. Her IRA is in the trust. Who pays the taxes on the IRA. My Client or the trust
  • Lion
    Senior Member
    • Jun 2005
    • 4698

    #2
    Read the trust document.

    Comment

    • New York Enrolled Agent
      Senior Member
      • Nov 2006
      • 1530

      #3
      You say the IRA is in the trust. Do you mean the trust is the beneficiary of the IRA or is there an individual(s) who are the designated beneficiaries?

      Comment

      • Rapid Robert
        Senior Member
        • Oct 2015
        • 1983

        #4
        To clarify, do you mean the trust was named as a beneficiary of the IRA? There are some rules that if followed allow the beneficiaries of the trust to be considered designated beneficiaries of the IRA, so that they can pay lower tax on distributions spread out over time. But in any case, as long as the income is distributed from the trust, I think it would be taxed to the recipient, not the trust. Obviously paying tax on the entire balance in a single year at trust rates would be the least desirable outcome, but it should be avoidable.
        [edit: composed before NYEA post, but not posted until after due to stepping away from desk]
        Last edited by Rapid Robert; 06-07-2019, 06:50 PM.
        "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
        "That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe Howard

        Comment

        Working...