AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
My name is Curtis. My elderly parents set up an Irrevocable Living Trust back in 2002 naming me as the Trustee and Executor. They also have a Will that states whatever is left over from their estate upon their death is to be divided up equally between me and my two older brothers. My parents had their IRA and house in the Trust. My father died in late 2002 and my mother died in Jan. 2008. When I closed out my parents IRA, Merrill Lynch (the company that had the IRA) sent me a check for $51366.59. I divided it up between my brothers and myself. Now, my personal CPA is telling me that I have to pay $10914 in taxes on that $51k. I am married and file jointly. Our Adjusted Gross Income will probably be @ $105k. (I filed an extension so my taxes are just being prepared now). I thought the whole purpose of my parents putting the money into a Trust was to protect it for themselves while living and, to be able to pass it on to us with little or no tax after they died. This seems punitive. Can you offer any insight?
Thanks
Answer Curtis,
Thanks for your question.
Since the IRA was funded with deductible dollars, the proceeds will be taxed upon withdrawal - regardless if the withdrawal is by the original owner, an heir, or a trust. Your CPA is correct.
