AboutBruce Julien Expertise I can answer questions on and raise issues clients overlook in the areas of Estate Planning as far as taxes and distribution flow problems, Asset Management as far as appropriateness of assets and allocations for a desired goal and the value a consumer gets for their costs, Tax Planning related to Income and Estates, and Insurance/Annuity questions particularly in light of suitability to the consumer.
Experience I became a CPA in 1991 and began offering financial advice in 1992. I am a Registered Investment Advisor which means I sign off on putting clients' interests first in a fiduciary role.
Education/Credentials BA in Accounting, University of Maryland 1990
Question My sister passed away in 2007. In 2008 and in 2009 I moved money from her traditional IRA to an irrevocable trust which i then used to pay medical expenses or to reimburse another for medical expenses paid on her behalf. Additional funds in the traditional IRA (now and IRA-BDA) need to be distributed among 4 people. Three are minors and the distribution is going to be put into 529 accounts for their education; the 4th is currently in medical school.
Questions:
1. Does the estate owe taxes on the 2008 distribution for medical expense? (Tax return hasn't been filed yet).
2. Does the estate owe taxes on the 2009 distribution for medical expenses?
3. Is there any way to lessen the tax burden on the children's share of remaining funds?
Thank you for any information you can provide.
Answer Yes
Yes
No
Patricia, you are trying to handle this yourself, and if it is as complicated as this you need an estate planning attorney or, probably cheaper, a financial planner (fee only) who can walk you through this.
