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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Trusts
Expert: John Kirk, CPA
Date: 9/19/2008
Subject: Trusts
Question
My father passed two years ago and left his property in trust. The trust is still in his name. The beneficiaries are myself and two sisters. We recently wrote each of us a check for $5,000.00 from the trust and now we are told that we have to report and pay taxes on that amount. Is that correct? I would appreciate any help you may give.
Answer
It depends on the trust agreement, If the trust is required to distribute income to you, you should be receiving a schedule K-1 from the trust showing the amount of taxable income to you. If the trust is not required to distribute income currently, the trust pays the tax.
We would need to read the trust agreement to be sure which is the case for you.
John Kirk, CPA
www.johnkirkcpa.com
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