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Irwin Law
Irwin Law, Attorney
Category: Estate Law
Satisfied Customers: 6847
Experience:  30+ yrs. handling probate estate, wills, trust, inheritance & real estate related matters
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I have received a lump sum distribution (now monthly) from a

Customer Question

I have received a lump sum distribution (now monthly) from a trust in California and I had to amend my tax returns both on the Federal and State (California and Illinois) level. The trustee and their accountants stated that State and Federal Taxes had been paid while in escrow, however, according to California Trust Laws, the were under no obligation to show proof for this. The amended tax returns were rejected because "We have no proof that the trust paid them" and I am being threatened with lawsuits to pay these taxes again.
Submitted: 1 year ago.
Category: Estate Law
Expert:  Irwin Law replied 1 year ago.

You are Entitled to an accounting by the trustees for every dime that they spent over the years. The accounting will show whether or not the paid income tax. My guess is that they did not, because trust income tax rates are much higher than most individual's. But they should have told you that they were passing the tax to the beneficiaries and they should have sent you a K-1 form to file with your personal 1040 income tax return. If the trustee continues to stonewall you, then you will have no choice but to hire a CA attorney to bring them into court and force them to disclose the necessary information. I will be off line for most, but not all of the next 36 hours, so please be patient if you have follow up questions. I will definitely answer you no later than Thursday a.m.

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