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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 36177
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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My mother set up a revocable trust, she resigned years later

Customer Question

My mother set up a revocable trust, she resigned years later as trustee, two of the four children were appointed successor trustees, the trust owned the house she lived in. She died last July, the property has been sold and the proceeds distributed to the four children. Does the trust now need to be 'dissolved' since there are no more assets
Submitted: 1 year ago.
Category: Estate Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can..Have all of the assets of the trust been completely distributed or spend on expenses so that any trust bank accounts have a zero balance?..thanksBarrister
Customer: replied 1 year ago.
I am waiting on a refund for the flood policy and electric company overpayment refund. Then I can zero out the remaining funds.
Expert:  Barrister replied 1 year ago.
Ok, the way a trust works is that as long as it has a "corpus" (i.e. assets in it) then it is still a legal entity. When all the assets in it have been transferred out of it, it expires and legally ceases to exist. So there is nothing that needs to be done to terminate the trust because it automatically terminates once all assets are gone. Other than closing out any bank accounts, there is nothing that needs to be done to shut the trust down...thanksBarrister
Customer: replied 1 year ago.
Perfect, thank you very much!
Customer: replied 1 year ago.
Is money distributed from a trust taxable as income?
Expert:  Barrister replied 1 year ago.
You are very welcome. Glad to help any time..As for the tax question, no an inheritance is not considered as income to the recipient...thanksBarrister

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